Income Statement
Following information was taken from the Jamestown Metal Works for the year ended December 31, XXXX:
Sales $10,000,000
Finished goods inventory, Jan 1 $800,000
Finished goods inventory, Dec 31 $700,000
Raw materials inventory, Jan 1 $150,000
Raw materials inventory, Dec 31 $200,000
Raw materials purchases $1,000,000
Direct labor (20,000 hours at $30 @ hour) $600,000
Overhead applied at rate of $20 per DLH
Work in process inventory, Jan 1 $100,000
Work in process inventory, Dec 31 $125,000
Selling, general and administrative expenses $5,000,000
Required:
- Prepare cost of goods manufactured schedule.
- Prepare income statement with detailed cost of goods sold section.
