Chapter 2, Problem 22E

Ellerson Company provided the following information for the last calendar year:

During the year, direct materials purchases amounted to $278,000, direct labor cost was $189,000, and overhead cost was $523,000. During the year, 100,000 units were completed.

Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of $1,312,000 and had selling and administrative expenses of $204,600.

Required:

1. 1. What is the cost of goods sold for last year?
2. 2. Prepare an income statement for Ellerson for last year.