Question

The following information is available for Robstown Corporation for 20Y8:

Inventories	January 1	December 31
Materials	$77,600	$93,600
Work in process	109,000	96,700
Finished goods	112,000	109,900

	December 31
Advertising expense	$ 69,000
Depreciation expense-office equipment	23,000
Depreciation expense-factory equipment	14,000
Direct labor	186,700
Heat, light, and power-factory	5,900
Indirect labor	24,860
Materials purchased	123,200
Office salaries expense	75,800
Property taxes-factory	4,005
Property taxes-office building	12,600
Rent expense-factory	6,375
Sales	862,000
Sales salaries expense	135,000
Supplies-factory	3,500
Miscellaneous costs-factory	4,620

	Required:
	a. Prepare the 20Y8 statement of cost of goods manufactured. For those boxes in which you must enter subtracted or negative numbers use a minus sign.*
	b. Prepare the 20Y8 income statement. Enter all amounts as positive numbers.* *Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Amount Descriptions Advertising expense Cost of direct materials used in production Cost of finished goods available for sale Cost of goods manufactured Cost of goods sold Cost of materials available for use Depreciation expense-factory equipment Depreciation expense-office equipment Direct labor Finished goods inventory, December 31, 20Y8 Finished goods inventory, January 1, 20Y8 Gross profit Heat, light, and power-factory Indirect labor Materials inventory, December 31, 20Y8 Materials inventory, January 1, 20Y8 Miscellaneous costs-factory Net income Office salaries expense Property taxes-factory Property taxes-office building Purchases Rent expense-factory Sales Sales salaries expense Supplies-factory Total manufacturing costs incurred in 20Y8 Total operating expenses Work in process inventory, December 31, 20Y8 Work in process inventory, January 1, 20Y8 a. Prepare the 20Y8 statement of cost of goods manufactured. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Robstown Corporation Statement of Cost of Goods Manufactured For the Year Ended December 31, 20Y8 1 2 Direct materials: 3 4 5 6 7 8 9 Factory overhead: 10 11 12 13 14 15 16 17 Total factory overhead 18 19 Total manufacturing costs 20 21 Income Statement b. Prepare the 20Y8 income statement. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers. Robstown Corporation Income Statement For the Year Ended December 31, 20Y8 1 2 Cost of goods sold: 3 4 5 6 7 8 9 Operating expenses: 10 Administrative expenses: 11 12 13 14 Selling expenses: 15 16 17 18

Answer 1