Greenville Products Inc. is a manufacturing firm. The company’s inventory balances were as follows at the beginning and end of the year:
The following transactions were recorded for the year:
‘ Raw materials were purchased, $300,000.
‘ Raw materials were requisitioned for use in production, $297,000 $(281,000 direct and $16,000 indirect).
‘ The following employee costs were incurred: direct labor, $399,000; indirect labor, $62,000; and administrative salaries, $176,000.
‘ Selling costs, $165,000.
‘ Factory utility costs, $19,000.
‘ Depreciation for the year was $143,000 of which $137,000 is related to factory operations and $6,000 is related to selling, general, and administrative activities.
‘ Sales for the year totaled $1,293,000.
a. Prepare a schedule of cost of goods manufactured in good form.
b. Prepare an income statement for the year in good form.