Classify the costs listed in Alternate problem A as either product costs or period costs.
Presley Manufacturing Company is a producer of music compact discs (CDs) and tapes. The following account balances are for the year ended 2009 December 31
|
Administrative expenses |
$60,000 |
|
Depreciation expense – Manufacturing equipment |
50,000 |
|
Direct labor |
468,000 |
|
Manufacturing supplies expense |
40,000 |
|
Indirect labor |
36,000 |
|
Beginning inventories, 2009 January 1: |
|
|
Direct materials |
14,000 |
|
Work in process |
20,000 |
|
Finished goods |
128,000 |
|
Ending inventories, 2009 December 31 |
|
|
Direct materials |
44,000 |
|
Work in process |
56,000 |
|
Finished goods |
92,000 |
|
Direct materials purchases |
216,000 |
|
Rent expense – Factory |
28,000 |
|
Sales |
1,400,000 |
|
Selling expense |
72,000 |
|
Other manufacturing overhead |
126,000 |
a. Prepare a statement of cost of goods manufactured for Presley Manufacturing Company for 2009.
b. Prepare an income statement for the year ended 2009 December 31.