Reference no: EM132516626

The following data refer to Nani's Fashions for the current year:

Sales Revenues                                           $475 000

Work in process inventory, 31 December             15 000

Work in process inventory, 1 January                 20 000

Selling and administrative expenses                  75 000

Income tax expense                                      45 000

Purchase of raw materials                              90 000

Raw materials inventory, 31 December              12 500

Raw material inventory. 1 January                    20 000

Direct labour                                              100 000

Electricity: plant                                         20 000

Depreciation plant and equipment                  30 000

Finished goods inventory, 31 December             25 000

Finished goods inventory, 1 January                10 000

Indirect material                                           5 000

Indirect labour                                             7 500

Other manufacturing overhead                       40 000

Required:

Question a) Prepare the schedule of cost of goods manufactured for Nani's fashion.

Question b) Prepare the schedule of cost of goods sold for Nani's Fashions and explain the information provided by the schedule of cost of goods sold.

Question c) Prepare an income statement for the current year.