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1. Comment on the cost classifications used in CTC's income statement.
2. Estimate the cost of goods manufactured and sold.
3. Prepare a revised income statement for the month.
4. Explain the differences between your income statement and the one above.
5. If possible, suggest a more useful format for analysing costs than that used in your revised income statement.
6. Evaluate the usefulness of product costs based on direct materials and direct labour for determining selling prices.
7. Make recommendations for changes to be made to the company's approach to product costing and reporting pro?t.
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
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