Question

The following information pertains to Alberto Manufacturing Company for year 2017.

Sales revenue                                                         $1,800,000                               

Repairs and maintenance of factory                        $45,000

Direct material purchases                                          500,000                               

Travel & entertainment cost by sales people             32,400

Direct manufacturing labor                                       250,000                                

Depreciation – factory equipment                              24,000

Administrative salaries                                             162,000                                

Depreciation—office equipment                                21,600

Sales commissions                                                 135,000                               

Materials handling                                                    18,000

Sales salaries                                                           81,000                                

Property taxes – factory equipment                          18,000

Indirect manufacturing labor                                      69,000                                 

Depreciation—factory building                                  15,000

Leasing costs – factory equipment                           54,000                                

Gain on disposal of assets                                         8,500

Advertising expense                                                 54,000                                

Sandpaper                                                                  6,000

Utilities                                                                       54,000                                  

Fire insurance – factory equipment                            6,000

Coolants & lubricants - factory equip                         45,000                                    

Interest Expense                                                        4,000

RM Materials Inventory , 1/1/17                               $45,000       

RM Materials Inventory, 12/31/17                             $58,000

Work-in-Process Inventory, 1/1/17                            150,000     

Work-in-Process Inventory, 12/31/17                          77,000

Finished Goods Inventory, 1/1/17                                 88,000      

Finished Goods Inventory, 12/31/17                             112,000

Requirement: In the space provided on the Answer Sheets prepare a Statement of Cost Goods Manufactured and Sold.

Answer 1