Preparation of schedule of cost of goods manufactured and cost of goods sold.
Hurwitz Corporation had the following activities during 2007:
|
Raw Materials
|
|
|
Inventory January 1, 2007
|
$200,000
|
|
Purchases of raw materials
|
318,000
|
|
Inventory December 31, 2007
|
210,000
|
|
Direct Manufacturing labor
|
180,000
|
|
Utilities: plant
|
50,000
|
|
Depreciation: plant and equipments
|
40,000
|
|
Indirect materials
|
30,000
|
|
Indirect labor
|
150,000
|
|
Other manufacturing overhead
|
60,000
|
|
Sales revenues
|
1,250,000
|
|
Selling and administrative expenses
|
150,000
|
|
Income tax rate
|
30%
|
|
Work in process inventory, December 31, 2007
|
120,000
|
|
Work in process inventory, January 1, 2007
|
64,000
|
|
Finished goods inventory, January 1, 2007
|
80,000
|
|
Finished goods inventory, December 31, 2007
|
150,000
|
Required:
(a) Prepare a schedule of cost of goods manufactured for 2007.
(b) Prepare a schedule of cost of goods sold for 2007.
(c) Prepare an income statement for 2007.