Question

In: Accounting

Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part...

Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job interview as a

summer intern at Mesa, the cost accountant provides you with the following (fictitious) data for the year (in $000).

Inventory information: 1/1/00 12/31/00

Direct materials $ 59 $ 66

Work-in-process 87 79

Finished goods 998 1,024

Other information: For the year ’00

Administrative costs $ 3,200

Depreciation (Factory) 3,330

Depreciation (Machines) 4,730

Direct labor 7,600

Direct materials purchased 5,260

Indirect labor (Factory) 1,780

Indirect materials (Factory) 590

Property taxes (Factory) 240

Selling costs 1,180

Sales revenue 35,610

Utilities (Factory) 640

Required:

1. Prepare a cost of goods sold statement.

2. Prepare an income statement.

Solutions

Expert Solution

Solution:

1.

The following images shows the cost of goods sold statement and Incom statement

ekkarill92 answered 2 years ago
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