Reference no: EM132633351

Problem 1: Cost of Goods Manufactured, Income Statement

W.W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for $400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips' accounting records provide the following information:

Purchases of raw materials $320,000

Salary, sales supervisor$ 90,000

Beginning materials inventory 46,800

Commissions, sales persons 180,000

Ending materials inventory 66,800

General administration 300,000

Direct labour 200,000

Beginning work-in-process inventory 13,040

Indirect labour 40,000

Ending work-in-process inventory 14,940

Rent, factory building 42,000

Beginning finished goods inventory 80,000

Depreciation, factory equipment 60,000

Ending finished goods inventory 114,100

Utilities, factory11,900