Income statement and schedule of cost of goods manufactured. The Howell Corporation has the following account balances (in millions):
|
For Specific Date |
For Year 2011 |
||
|
Direct materials inventory, Jan. 1, 2011 |
$15 |
Purchases of direct materials |
$325 |
|
Work in process inventory, Jan. 1, 2011 |
10 |
Direct manufacturing labor |
100 |
|
Finished goods inventory, Jan. 1, 2011 |
70 |
Depreciation—plant and equipment |
80 |
|
Direct materials inventory, Dec. 31, 2011 |
20 |
Plant supervisory salaries |
5 |
|
Work in process inventory, Dec. 31, 2011 |
5 |
Miscellaneous plant overhead |
35 |
|
Finished goods inventory, Dec. 31, 2011 |
55 |
Revenues |
950 |
|
Marketing, distribution, and customer service costs |
240 |
||
|
Plant supplies used |
10 |
||
|
Plant utilities |
30 |
||
|
Indirect manufacturing labor |
60 |
Prepare an income statement and a supporting schedule of cost of goods manufactured for the year ended December 31, 2011. (For additional questions regarding these facts, see the next problem.)