Maurice Tutor

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Category > Management Posted 31 Jan 2018 My Price 8.00

Craig’s Pets

Preparing cost of goods manufactured schedule and income statement for a manufacturing company

Craig’s Pets succeeded so well that Craig decided to manufacture his own brand of chewing bone—Organic Bones. At the end of December 2012, his accounting records showed the following:

Inventories:

Beginning

Ending

  

Materials

$ 13,200

$ 7,000

  

Work in process

0

4,000

  

Finished goods

0

5,800

  

Other information:

      

Direct material purchases

$ 31,000

Utilities for plant

$ 1,900

Plant janitorial services

200

Rent on plant

11,000

Sales salaries expense

5,400

Customer service hotline expense

1,200

Delivery expense

1,400

Direct labor

23,000

Sales revenue

110,000

    

Requirements

1. Prepare a schedule of cost of goods manufactured for Organic Bones for the year ended December 31, 2012.

2. Prepare an income statement for Organic Bones for the year ended December 31, 2012.

3. How does the format of the income statement for Organic Bones differ from the income statement of a merchandiser?

4. Organic Bones manufactured 15,400 units of its product in 2012. Compute the company’s unit product cost for the year.

Answers

Maurice Tutor
(5)
Status NEW Posted 31 Jan 2018 01:01 AM My Price 8.00

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