Problem
Spumante Manufacturer Ltd had provided a list of adjusted ledger account balances at the end of financial year of 30 June 2014. All ledger balances are normal balances.
|
Advertising expense
|
$ 60,000
|
Administrative office rent
|
$ 30,000
|
|
Sales travel expense
|
18,300
|
Office salaries
|
211,200
|
|
Depreciation-factory machinery
|
19,200
|
Rates-factory
|
24,000
|
|
Depreciation-office equipment
|
7,200
|
Discounts received on raw materials
|
4,000
|
|
Direct labour
|
195,000
|
Raw materials inventory 1/7/2013
|
57,600
|
|
Factory power
|
18,000
|
Raw materials inventory 30/6/2014
|
62,400
|
|
Factory rent
|
120,000
|
Raw materials purchases
|
640,000
|
|
Factory supplies
|
148,000
|
Sales revenue
|
1,900,000
|
|
Finished goods, 1/7/2013
|
130,000
|
Sales returns
|
31,400
|
|
Finished goods, 30/6/2014
|
125,000
|
Sales commissions
|
57,300
|
|
Freight inward (materials)
|
8,700
|
Work in process, 1/7/2013
|
27,000
|
|
Indirect labour
|
64,000
|
Work in process, 30/6/2014
|
30,000
|
|
Machinery repairs
|
38,900
|
|
|
Using Microsoft Excel you are required to:
A. Prepare a cost of goods manufactured statement for the year ended 30 June 2014.
B. Prepare an income statement for the year ended 30 June 2014.