Information about Cari Enterprise for the month ending December 31, 2012 is as follows:
- Sale $300000
- Selling and administrative expense 18000
- Net income 8000
- Beginning inventories:
- Direct material :20000
- Work in process:18000
- Finish goods: 62000
Ending direct material is 20% larger than beginning direct material. Ending work in process is half of the beginning work in process. Ending finished goods increased by $8000 during the year. Prime cost and conversion cost are 80% and 70% of total manufacturing cost added, respectively.
a. prepare a statement of cost of goods manufacturing for December
b. prepare an income statement for December
c. Determine prime and conversion cost