Reference no: EM132516624

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 1: Prepare the schedule of cost of goods manufactured for Nani's fashion.

Question 2: 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 3: Prepare an income statement for the current year.

Question 4: K-mart a very successful business chain in Australia follows a strategy based on cost leadership. List 5 types of management accounting information that might assist K-mart management to make business decisions.