Reference no: EM132716178
Question - The following information was taken from the accounting records of mitchell company for the last year:
selling expense $140,000
raw material inventory, jan 1ST 90,000
raw material inventory, dec 31st 60,000
utilities factory 36,000
direct labour cost 150,000
depreciation, factory 162,000
purchase of raw materials 750,000
sales 2,500,000
insurance, factory 40,000
suppliers, factory 15,000
administrative expenses 270,000
indirect labour 300,000
maintenance, factory 87,000
work in process inventory, jan 1st 180,000
work in process inventory, dec 31st 100,000
finished goods inventory, january 1st 260,000
finished goods inventory, dec 31st 210,000
Management wants to organize these data into a better format so that financial statements can be prepared for the year.
Required -
1. Prepare schedule of cost of goods manufactured.
2. Compute the cost of goods sold.
3. Using the data from part 1 and 2 prepare income statement.