Reference no: EM132526978

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.