In: Accounting
Advertising expense $22,250 Direct labor $564,500
Depreciation expense – Office Equip $10,440 Income taxes expense $138,700
Depreciation expense – Selling Equip. $ 12,125 Indirect labor $61,000
Depreciation expense – Factory Equip. $37,400 Misc. Production costs $10,400
Factory supervision $123,400 Office salaries expense $ 72,875
Factory supplies used (indirect materials) $8,060 Raw Materials purchased $896,375
Factory utilities $39,500 Rent expense- office $25,625
INVENTORIES: Rent expense- selling space $29,000
Raw Materials, Dec 31, 2018 $42,375 Rent expense- factory building $95,500
Raw Materials, Dec 31, 2019 $72,430 Maintenance expense- factory $32,375
Goods-in-Process, Dec 31, 2018 $14,500 Sales $5,002,000
Goods-in-Process, Dec 31, 2019 $16,100 Sales discounts $59,375
Finished Goods, Dec 31, 2018 $179,200 Sales salaries expense $297,300
Finished Goods, Dec 31, 2019 $143,750
DATE ACCOUNT NAMES
A Raw Materials Inventory
Accounts Payable
B Goods-in-Process Inventory
Raw Materials
Inventory
C Factory Payroll
Cash
D Goods-in-Process Inventory
Factory Overhead
Factory Payroll
E Factory Overhead
Accum. Dep., Factory
Cash
F Goods-in-Process Inventory
Factory Overhead
G Finished Goods Inventory
Goods-in-Process
Inventory
H Cost of Goods Sold
Finished Goods
Inventory
I Factory Overhead
Cost of Goods Sold
Answer to the question:
Income statement:
Income Statement | |
For the year ended Dec 31 2019 | |
Particular | Amount |
Income | |
Sales | $ 5,002,000 |
Total A | $ 5,002,000 |
Expenses | |
Cost of good sold (See note 1) | $ 900,170 |
Direct Labor | $ 564,500 |
Indirect Labor | $ 61,000 |
Misc production cost | $ 10,400 |
Factory Supervision | $ 123,400 |
Factory utilites | $ 39,500 |
Factory supplies used (indirect materials) | $ 8,060 |
Maintenance expense- Factory | $ 32,375 |
Depreciation expense- Factory equip | $ 37,400 |
Advertising expense | $ 22,250 |
Depreciation expense- Office equip | $ 10,440 |
Depreciation expense- Selling equip | $ 12,125 |
Sales discounts | $ 59,375 |
Sales Salaries expenses | $ 297,300 |
Rent expense- Office | $ 25,625 |
Rent expense- Selling space | $ 29,000 |
Rent expense- factory building | $ 95,500 |
Office salaries expense | $ 72,875 |
Total B | $ 2,401,295 |
Income before taxes (A-B) | $ 2,600,705 |
Income tax expenses | $ 138,700 |
Income after taxes | $ 2,462,005 |
Working Notes:
1. Cost of Sales
Purchases made $896375
Add: Inventory as on Dec,31,2018
Raw Material $42375
Goods in process $14500
Finished goods $179200
Less: Inventory as on Dec,31, 2019 $72430
Goods in process $16100
Finished goods $143750
Cost of Goods sold $900170