4. Ehrlich Company had the following inventory balances at the beginning and end of the year: January 1 December 31 Raw material $60,000 $50,000 Work in process 140,000 180,000 Finished goods 280,000 255,000 During the year, the company purchased $110,000 of raw material and incurred $350,000 of direct labor costs. Other data: manufacturing overhead incurred, $450,000; manufacturing overhead applied, $460,000 Sales, $1,600,000; Selling and administrative expenses, $97,000; Income tax rate, 30%. Required: A. Prepare a schedule of cost of goods manufactured. B. Prepare a schedule of goods sold. C. Prepare an income statement.
4. Ehrlich Company had the following inventory balances at the beginning and end of the year: January 1 December 31 Raw material $60,000 $50,000 Work in process 140,000 180,000 Finished goods 280,000 255,000 During the year, the company purchased $110,000 of raw material and incurred $350,000 of direct labor costs. Other data: manufacturing overhead incurred, $450,000; manufacturing overhead applied, $460,000 Sales, $1,600,000; Selling and administrative expenses, $97,000; Income tax rate, 30%. Required: A. Prepare a schedule of cost of goods manufactured. B. Prepare a schedule of goods sold. C. Prepare an income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
4.
Ehrlich Company had the following inventory balances at the beginning and end of the year:
|
|
January 1 |
December 31 |
|
Raw material |
$60,000 |
$50,000 |
|
Work in process |
140,000 |
180,000 |
|
Finished goods |
280,000 |
255,000 |
During the year, the company purchased $110,000 of raw material and incurred $350,000 of direct labor costs.
Other data: manufacturing overhead incurred, $450,000; manufacturing overhead applied, $460,000
Sales, $1,600,000;
Selling and administrative expenses, $97,000;
Income tax rate, 30%.
Required:
A. Prepare a schedule of cost of goods manufactured.
B. Prepare a schedule of goods sold.
C. Prepare an income statement.
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