1) The following information is available for The NewQuest Corporation for 2016: Inventories Jan 1 Dec31 Materials $351,000 $436,800 Work in Process 631,800 592,800 Finished goods 608,400 576,000 $ 296,400 Advertising expense Depreciation expense – office equipment Depreciation expense- factory equipment 42,120 56,160 Direct Labor 670,800 Heat, light, and power-factory Indirect labor 22,460 78,750 Materials purchased Office salaries expense 659,800 185,000 Property taxes factory Property taxes-office building Rent expense-factory 18,500 32,400 32,000 Sales 3,010,000 Sales salaries expense 420,000 Supplies-factory Miscellaneous costs-factory 15,400 9,500 Instructions 1. Prepare the 2016 statement of cost of goods manufactured. 2. Prepare the 2016 income statement.

1) The following information is available for The NewQuest Corporation for 2016: Inventories Jan 1 Dec31 Materials $351,000 $436,800 Work in Process 631,800 592,800 Finished goods 608,400 576,000 $ 296,400 Advertising expense Depreciation expense – office equipment Depreciation expense- factory equipment 42,120 56,160 Direct Labor 670,800 Heat, light, and power-factory Indirect labor 22,460 78,750 Materials purchased Office salaries expense 659,800 185,000 Property taxes factory Property taxes-office building Rent expense-factory 18,500 32,400 32,000 Sales 3,010,000 Sales salaries expense 420,000 Supplies-factory Miscellaneous costs-factory 15,400 9,500 Instructions 1. Prepare the 2016 statement of cost of goods manufactured. 2. Prepare the 2016 income statement.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. Prepare the 2016 statement of cost of goods manufactured.

2. Prepare the 2016 income statement.

1) The following information is available for The NewQuest
Corporation for 2016:
Inventories
Jan 1
Dec31
Materials
$351,000 $436,800
Work in Process
631,800 592,800
Finished goods
608,400 576,000
Advertising expense
$ 296,400
Depreciation expense – office equipment
Depreciation expense- factory equipment
42,120
56,160
Direct Labor
670,800
Heat, light, and power-factory
22,460
Indirect labor
78,750
Materials purchased
Office salaries expense
659,800
185,000
Property taxes-factory
18,500
Property taxes-office building
32,400
Rent expense-factory
32,000
Sales
3,010,000
Sales salaries expense
420,000
Supplies factory
Miscellaneous costs-factory
15,400
9,500
Instructions
1. Prepare the 2016 statement of cost of goods
manufactured.
2. Prepare the 2016 income statement.

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