The following information is available for Earp Corporation for 2008:
|
Inventories |
January 1 |
December 31 |
|
Materials |
$125,000 |
$155,000 |
|
Work in process |
225,000 |
210,000 |
|
Finished goods |
215,000 |
210,000 |
|
Advertising expense |
$ 105,000 |
|
Depreciation expense—Office equipment |
15,000 |
|
Depreciation expense—Factory equipment |
20,000 |
|
Direct labor |
240,000 |
|
Heat, light, and power—Factory |
8,000 |
|
Indirect labor |
28,000 |
|
Materials purchased during August |
235,000 |
|
Office salaries expense |
82,000 |
|
Property taxes—Factory |
6,500 |
|
Property taxes—Office building |
13,500 |
|
Rent expense—Factory |
11,000 |
|
Sales |
1,100,000 |
|
Sales salaries expense |
135,000 |
|
Supplies—Factory |
5,500 |
|
Miscellaneous cost—Factory |
3,400 |
Instructions
1. Prepare the 2008 statement of cost of goods manufactured.
2. Prepare the 2008 income statement.