The following information is available for Aikman Company.
|
|
January 1, 2017
|
2017
|
December 31, 2017
|
|
Raw materials inventory
|
$ 21,000
|
|
$ 30,000
|
|
Work in process inventory
|
13,500
|
|
17,200
|
|
Finished goods inventory
|
27,000
|
|
21,000
|
|
Materials purchased
|
|
$150,000
|
|
|
Direct labor
|
|
220,000
|
|
|
Manufacturing overhead
|
|
180,000
|
|
|
Sales revenue
|
|
910,000
|
|
Instructions
a. Compute cost of goods manufactured.
b. Prepare an income statement through gross profit.
c. Show the presentation of the ending inventories on the December 31, 2017, balance sheet.