The following information is available for Sano Instrument Manufacturing Company for 2008:
|
Inventories |
January 1 |
December 31 |
|
Materials |
$ 85,000 |
$105,000 |
|
Work in process |
120,000 |
105,000 |
|
Finished goods |
125,000 |
110,000 |
|
Advertising expense |
$ 75,000 |
|
Depreciation expense—Office equipment |
25,000 |
|
Depreciation expense—Factory equipment |
16,000 |
|
Direct labor |
205,000 |
|
Heat, light, and power—Factory |
6,500 |
|
Indirect labor |
26,000 |
|
Materials purchased during August |
135,000 |
|
Office salaries expense |
85,000 |
|
Property taxes—Factory |
4,500 |
|
Property taxes—Headquarters building |
15,000 |
|
Rent expense—Factory |
7,500 |
|
Sales |
950,000 |
|
Sales salaries expense |
150,000 |
|
Supplies—Factory |
3,500 |
|
Miscellaneous cost—Factory |
4,500 |
Instructions
1. Prepare the 2008 statement of cost of goods manufactured.
2. Prepare the 2008 income statement.