Question

The following information has been taken from the perpetual inventory system of Imperial Mfg. Co. for the month ended September 30:

Purchases of direct materials	...........................................	$72,000
Direct Materials Used	...........................................	$70,000
Direct labor costs assigned in production	...........................................	$40,000
Manufacturing overhead labor costs incurred	...........................................	$60,000
Balances in Inventory	Sept. 30	Sept. 1
Materials	$?	$60,000
Work in Progress	$35,000	$45,000
Finished Goods	$88,000	$76,000

Prepare the Income Statement for the month of September; Net Sales amount to $900,000 and Selling Expenses are $20,000 & Administrative expenses are $10,000.

Answer 1