You are provided with the following data about a manufacturing firm. The company operates in Australia where the corporate tax rate is 30%.
Account:
Jan 1, 201X
Dec 31, 201X
Work in Process
Jan 1 100,000
Dec 31, 75,000
Raw Material Inventory
Jan 1 100,000
December 31 62,500
Finished Goods Inventory
Jan 1 50,000
Dec 31 125,000
Sales Revenue
2,500,000
Selling & Administrative expenses
375,000
Income tax
0.30
Raw Materials Purchased
450,000
Indirect Material
25,000
Direct Labour
500,000
Indirect labour
37,500
Factory heat, light and power
250,000
Depreciation of Factory Plant & Equipment
150,000
Other Factory Overhead
200,000
(i) prepare a cost of goods manufactured schedule, cost of goods sold schedule and an income statement.
(ii) Prepare ledger accounts (T accounts) showing the movement of costs through the manufacturing cycle up to the closing off of Cost of Goods Sold to the Income Statement