August 2010 inventory and cost data for Petersham Company are as follows:
|
Direct labor
|
$182,400
|
|
Direct material purchased
|
196,300
|
|
Direct material used
|
195,800
|
|
Selling and administrative expenses
|
171,200
|
|
Factory overhead
|
205,700
|
|
|
|
8/1/10
|
8/31/10
|
|
Direct material
|
$12,300
|
$ ?
|
|
WIP
|
25,900
|
33,300
|
|
Finished goods
|
62,700
|
55,500
|
a. Compute the inventory value for direct materials at August 31, 2010.
b. Compute total product costs for August 2010.
c. Prepare a schedule of cost of goods manufactured for August 2010.
d. Compute cost of goods sold for August 2010.
e. Prepare an income statement for August 2010. Assume that Petersham's income tax rate is 40 percent. Sales for August 2010 were $985,000.