The following data relates to the Austin Co.:Direct Materials Inventory, Beginning$330Direct Materials Inventory, Ending$290Direct Materials Purchases$1,650Direct Labor$1,200Factory Overhead$950Work-in-Process Inventory, Beginning$450Work-in-Process Inventory, Ending$400Finished Goods Inventory, Beginning$950Finished Goods Inventory, Ending066$Sales Revenue$5,600Selling and Administrative Expenses$1300Income Tax Rate30%Required: Please answer all the following questions, and show your works and computations to get full credits.1. Prepare a Statement of Cost of Goods Manufactured for the company.2. Prepare an Income Statement for the company. Show your work all the way to Net Income/Loss.

Solution-1 Statement of Cost of goods Manufactured Particulars Amount…

The following data relates to the Austin Co.: Direct Materials Inventory, Beginning $330 Direct Materials Inventory, Ending $290 Direct Materials Purchases $1,650 Direct Labor $1,200 Factory Overhead $950 Work-in-Process Inventory, Beginning $450 Work-in-Process Inventory, Ending $400

The following data relates to the Austin Co.: Direct Materials Inventory, Beginning $330 Direct Materials Inventory, Ending $290 Direct Materials Purchases $1,650 Direct Labor $1,200 Factory Overhead $950 Work-in-Process Inventory, Beginning $450 Work-in-Process Inventory, Ending $400

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 6PA: During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of...

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

The following data relates to the Austin Co.:
Direct Materials Inventory, Beginning
$330
Direct Materials Inventory, Ending
$290
Direct Materials Purchases
$1,650
Direct Labor
$1,200
Factory Overhead
$950
Work-in-Process Inventory, Beginning
$450
Work-in-Process Inventory, Ending
$400
Finished Goods Inventory, Beginning
$950
Finished Goods Inventory, Ending
066$
Sales Revenue
$5,600
Selling and Administrative Expenses
$1300
Income Tax Rate
30%
Required: Please answer all the following questions, and show your works and computations to get full credits.
1. Prepare a Statement of Cost of Goods Manufactured for the company.
2. Prepare an Income Statement for the company. Show your work all the way to Net Income/Loss.

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