Question

The administrative offices and manufacturing plant of Billings Tool & Die share the same building. The following information (in $000s) appears in the accounting records for last year.

Administrative costs	$	1,654
Building and machine depreciation (75% of this amount is for factory)		800
Building utilities (90% of this amount is for factory)		1,350
Direct labor		845
Direct materials inventory, December 31		16
Direct materials inventory, January 1		11
Direct materials purchases		3,700
Factory supervision		478
Finished goods inventory, December 31		61
Finished goods inventory, January 1		53
Indirect factory labor		915
Indirect materials and supplies		690
Marketing costs		865
Property taxes on building (85% of this amount is for factory)		900
Sales revenue		12,960
Work-in-process inventory, December 31		26
Work-in-process inventory, January 1		33

Required:

1. Prepare a cost of goods sold statement.

2. Prepare an income statement.

Prepare a cost of goods sold statement. (Enter your answers in thousands of dollars (i.e., 234,000 should be entered as 234).)

	BILLINGS TOOL & DIE Statement of Cost of Goods Sold For the Year Ended December 31 ($000) Manufacturing costs: Direct materials: Manufacturing overhead: Total manufacturing overhead 0 Total manufacturing costs Total cost of work in process during the year Costs of goods manufactured during the year Cost of goods sold

Prepare an income statement. (Enter your answers in thousands of dollars (i.e., 234,000 should be entered as 234).)

	BILLINGS TOOL & DIE Income Statement For the Year Ended December 31 ($000) Marketing and administrative costs: Total marketing and administrative costs

Answer 1