Statement of cost of goods manufactured and income statement for a manufacturing company The following information is available for Deutsch Corporation for 2010:
|
Inventories |
1 Jan |
31 Dec |
|
Materials |
$225,000 |
$280,000 |
|
Work in process |
405,000 |
380,000 |
|
Finished goods |
390,000 |
380,000 |
|
Advertising expense |
$190,000 |
|
Depreciation expense—office equipment |
27,000 |
|
Depreciation expense—factory equipment |
36,000 |
|
Direct labor |
430,000 |
|
Heat, light, and power—factory |
14,400 |
|
Indirect labor |
50,400 |
|
Materials purchased |
423,000 |
|
Office salaries expense |
147,500 |
|
Property taxes—factory |
11,700 |
|
Property taxes—office building |
24,300 |
|
Rent expense—factory |
19,800 |
|
Sales |
1,980,000 |
|
Sales salaries expense |
243,000 |
|
Supplies—factory |
9,900 |
|
Miscellaneous cost—factory |
6,120 |
Instructions
1. Prepare the 2010 statement of cost of goods manufactured.
2. Prepare the 2010 income statement.