Question: Use the information in Exercise to prepare an income statement for Randa Company (a manufacturer). Assume that its cost of goods manufactured is $546,390.
Exercise: Given the following selected account balances of Randa Company, prepare its manufacturing statement for the year ended on December 31, 2011. Include a listing of the individual overhead account balances in this statement.
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,252,000
Raw materials inventory, Dec. 31, 2010 . . . . . . . . . . . 39,000
Goods in process inventory, Dec. 31, 2010 . . . . . . . 55,900
Finished goods inventory, Dec. 31, 2010 . . . . . . . . . . 64,750
Raw materials purchases . . . . . . . . . . . . . . . . . . . . . . . 177,600
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,000
Factory computer supplies used . . . . . . . . . . . . . . . . . 19,840
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,000
Repairs-Factory equipment . . . . . . . . . . . . . . . . . . . . 7,250
Rent cost of factory building . . . . . . . . . . . . . . . . . . . . 59,000
Advertising expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 96,000
General and administrative expenses . . . . . . . . . . . . . 131,300
Raw materials inventory, Dec. 31, 2011 . . . . . . . . . . . 44,700
Goods in process inventory, Dec. 31, 2011 . . . . . . . 43,500
Finished goods inventory, Dec. 31, 2011 . . . . . . . . . . 69,300