Statement of cost of goods manufactured for good vibrations

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Reference no: EM131202549

Good Vibrations, Inc., produces videotapes of musical performances. A newly hired executive of the company has asked you to sort through the records and prepare a statement of the company”s cost of goods manufactured. You find the following data from records prepared by Good Vibrations, Inc., for the year ended 2009 December 31:

Inventories:

Beginning direct materials inventory, 2009 January 1   $6,000

Ending direct materials inventory, 2009 December 31   10,500

Beginning work in process inventory, 2009 January 1   10,000

Ending work in process inventory, 2009 December 31   9,500

Materials purchases   50,000

Direct labor   40,000

Indirect labor   15,000

Factory utilities expense   7,000

Factory supplies expense   5,000

Depreciation expense – factory building   14,000

Depreciation expense – Factory Equipment   10,500

Other manufacturing overhead   25,000

You also learn that beginning Finished Goods Inventory on 2009 January 1, was USD 20,000 and ending Finished Goods Inventory on 2009 December 31, was USD 5,000. Sales for the year were USD 400,000. Selling expenses were USD 50,000 and administrative expenses were USD 75,000.

a. Prepare a statement of cost of goods manufactured for Good Vibrations, Inc., for the year ended 2009 December 31.

b. Prepare an income statement for Good Vibrations, Inc., for the year ended 2009 December 31.

Reference no: EM131202549

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