Spades Company provided the following information for the year ended December 31, 2022: Sales 8,000,000 Sales salaries 520,000 Advertising 120,000 Indirect labor 600,000 Delivery expense 160,000 Freight in 80,000 Depreciation – machinery 50,000 Factory taxes 130,000 Purchases 1,600,000 Direct labor 1,480,000 Factory supplies expense 120,000 Office supplies expense 30,000 Office salaries 800,000 Factory superintendence 480,000 Doubtful accounts 100,000 Factory maintenance 150,000 Factory heat, light and power 220,000 Income tax expense 170,000 Doubtful accounts are common costs allocated to administrative expenses and selling expense equally. Inventory balances at the end of the fiscal period as compared with balances at the beginning of the fiscal period were as follows: Finished goods 200,000 Increase Goods in process 90,000 Increase Raw materials 100,000 Decrease Tax rate is 30%. 1. What is the amount of cost of goods sold for the current period? 2. What is the amount of general and administrative expense for the current period
Spades Company provided the following information for the year ended December 31, 2022:
Sales 8,000,000
Sales salaries 520,000
Advertising 120,000
Indirect labor 600,000
Delivery expense 160,000
Freight in 80,000
Factory taxes 130,000
Purchases 1,600,000
Direct labor 1,480,000
Factory supplies expense 120,000
Office supplies expense 30,000
Office salaries 800,000
Factory superintendence 480,000
Doubtful accounts 100,000
Factory maintenance 150,000
Factory heat, light and power 220,000
Income tax expense 170,000
Doubtful accounts are common costs allocated to administrative expenses and selling expense equally. Inventory balances
at the end of the fiscal period as compared with balances at the beginning of the fiscal period were as follows:
Finished goods 200,000 Increase
Goods in process 90,000 Increase
Raw materials 100,000 Decrease
Tax rate is 30%.
1. What is the amount of cost of goods sold for the current period?
2. What is the amount of general and administrative expense for the current period?
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