Reconstruct Financial Statements
San Ysidro Company manufactures hiking equipment. The company's administrative and manufacturing operations share the company's one building. Eighty percent of the building is used for manufacturing and the remainder is used for administrative activities. Indirect labor is 8 percent of direct labor.
The cost accountant at San Ysidro has compiled the following information for the year ended December 31:
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A
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B
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C
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1
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Administrative salaries
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$ 192,000
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2
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Attorney fees to settle zoning dispute
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22,960
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3
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Building depreciation (manufacturing portion only)
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181,440
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4
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Cost of goods manufactured
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2,776,760
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5
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Direct materials inventory, December 31
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248,000
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6
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Direct materials purchased during the year
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1,008,000
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7
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Direct materials used
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1,069,880
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8
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Distribution costs
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4,480
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9
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Finished goods inventory, January 1
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224,000
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10
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Finished goods inventory, December 31
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252,000
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11
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Insurance (on plant machinery)
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53,200
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12
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Maintenance (on plant machinery)
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33,880
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13
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Marketing costs
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103,600
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14
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Other plant costs
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82,160
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15
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Plant utilities
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104,160
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16
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Sales revenue
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4,550,000
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17
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Taxes on manufacturing property
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38,800
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18
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Total (direct and indirect) labor
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1,209,600
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19
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Work-in-process inventory, January 1
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72,520
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20
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Work-in-process inventory, December 31
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68,880
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21
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Required
Prepare a cost of goods manufactured and sold statement and an income statement.