managerial accounting p2 1 425921

Problem P2 1 Cost of Goods Manufactured, Cost of Goods Sold, and Income
The following information is available for Satterfield’s Custom Glass for the fiscal year ending December 31, 2011:

	Beginning balance in Work In Process		$200,000
	Ending balance in Work In Process		300,000
	Beginning balance in Finished Goods		500,000
	Ending balance in Finished Goods		400,000
	Direct material cost		2,000,000
	Direct labor cost		2,400,000
	Manufacturing overhead		1,700,000
	Selling expense		250,000
	General and administrative expenses		450,000
	Sales		8,000,000

*Required:*
*Part a.* Prepare a schedule of costs of goods manufactured.
Satterfield’s Custom Glass
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 2011
	Beginning balance in work in process		$200,000
	Add current manufacturing costs:
	Direct Material	$2,000,000
	Direct Labor	2,400,000
	Manufacturing overhead	1,700,000	Formula
	Selling expense		250,000
	General and administrative expenses		450,000
	Sales		$8,000,000

*Part b.* Prepare an income statement for fiscal 2011. Ignore income taxes.
Satterfield’s Custom Glass
Income Statement
For the Year Ended December 31, 2011
	Sales	$8,000,000
	Less cost of goods sold:
	Beginning balance in finished goods	$500,000
	Manufacturing Overhead	1,700,000
	Ending balance in finished goods	400,000
		Amount	Formula
	Title		Formula
	Less nonmanufacturing expenses:
	Title	Amount
	Title	Amount	Formula
	Title		Formula