Problem: Manufacturing Cost - Stoney Manufacturing
The following information pertains to Stoney Manufacturing for 20X6:Direct labour $ 30,000Sales 400,000Selling expenses 50,000Raw (Direct) materials on hand:January 18,000December 314,000General and administrative expenses 18,000Finished goods:January 125,000Work in process:January 119,000December 3118,000Direct material purchases 47,000Depreciation: factory 20,000Indirect labour 3,000Indirect materials used 7,000Marketing promotions 1,500Factory taxes 11,000Utilities 20,000Courier costs (office) 900Miscellaneous plant overhead 4,000Plant repairs and maintenance 9,000Customer service costs 3,000Fire insurance: factory equipment 3,000Materials handling costs 8,000Additional Information:a.
The gross profit margin is 73.25% b.
Depreciation is charged to production at 70%c.
Utilities are charged to production at 90%
Required:
1. Prepare a schedule of cost of goods manufactured for the year ended December 31.
2. Prepare a schedule of cost of goods sold.
3. Prepare an income statement for the year ended December 31.