Question

It is your first day as an intern at Frank's furniture, a major supplier of tables and chairs to some of the largest restaurants in the world. The Plant Controller has a big meeting tomorrow with the executive team and requests your help in preparing the financial information for the meeting. The Controller asks you to review the General Ledger accounts and prepare (A) an income statement and attach (B) a supporting cost of goods manufactured and sold statement.

Account Name					Amount
Work-in Process Inventory, January 1,2018					380,000
Work-in Process Inventory, December 31,2018					404,000
Sales Revenue					$        6,500,000
Administrative Costs					$        1,100,000
Marketing Costs					$        1,200,000
Direct Labor					1,050,000
Direct Materials Purchased					255,000
Direct Materials Inventory, January 1, 2018					190,000
Direct Materials Inventory, December 31, 2018					165,000
Finished Goods Inventory, January 1, 2018					300,000
Finished Goods Inventory, December 31, 2018					245,000
Plant Supervisor Indirect Labor Salaries					725,000
Manufacturing Equipment Depreciation					213,000
Plant Utilities					278,000
Manufacturing Equipment Repairs					95,000
Indirect Materials and Supplies					68,000

Answer 1