Question

Required information

The following selected account balances are provided for Delray Mfg.

Sales	$	1,250,000
Raw materials inventory, Dec. 31, 2016		37,000
Work in process inventory, Dec. 31, 2016		53,900
Finished goods inventory, Dec. 31, 2016		62,750
Raw materials purchases		175,600
Direct labor		225,000
Factory computer supplies used		17,840
Indirect labor		47,000
Repairs—Factory equipment		5,250
Rent cost of factory building		57,000
Advertising expense		94,000
General and administrative expenses		129,300
Raw materials inventory, Dec. 31, 2017		42,700
Work in process inventory, Dec. 31, 2017		41,500
Finished goods inventory, Dec. 31, 2017		67,300

Prepare an income statement for Delray Mfg. (a manufacturer).

DELRAY MFG. Income Statement For Year Ended December 31, 2017 Cost of goods sold: Cost of goods available for sale Cost of goods sold Operating expenses: Total operating expenses Operating income

Answer 1

delray mfg..

schedule of cost of goods sold for year ended 31 december 2017

particulars	amount	amount
raw materials
raw materials inventory dec31,2016	37000
purchase of raw material	175600
raw material available for use	212600
less raw material inventory dec31,2017	42700
raw material used		169900
direct labor		225000
manufacturing overhead
factory computer supplies used	17840
indirect labor	47000
repairs factory equipment	5250
rent cost of factory building	57000
total manufacturing overhead		127090
total manufacturing costs		521990
add; work in process inventory dec31, 2016		53900
total cost of work in process		575890
less; work in process inventory dec31, 2017		41500
cost of goods manufactured		534390
add;finished goods inventory dec31,2016		62750
cost of goods availble for sale		597140
less;finished goods inventory dec31,2017		67300
cost of goods sold		529840

delray mfg

income statement for year ended 31 december 2017

particulars	amount	amount
sales		1250000
cost of goods sold		529840
gross profit		720160
operating expenses
advertising expenses	94000
general and administrative exxpenses	129300
total operating expenses		223300
comprehensive net loss		496860