Homework Help is Here – Start Your Trial Now!
Business
Accounting
Prepare a cost of goods manufactured schedule and a correct income statement. P2.46A (LO 4) Tombert Company is a manufacturer of computers. Its controller resigned in October 2022. An inexperienced assistant accountant has prepared the following income statement for the month of October 2022. TOMBERT COMPANY Income Statement For the Month Ended October 31, 2022 Sales (net) $780,000 Less: Operating expenses Raw materials purchases $264,000 Direct labour cost 190,000 Advertising expense 90,000 Selling and administrative salaries 75,000 Rent on factory facilities 60,000 Depreciation on sales equipment 45,000 Depreciation on factory equipment 31,000 Indirect labour cost 28,000 Utilities expense 12,000 Insurance expense 8,000 803,000 Net loss $ (23,000) Prior to October 2022, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As his friend, he has asked you to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired the following additional information. 1. Inventory balances at the beginning and end of October were as follows: October 1 October 31 Raw materials $18,000 $29,000 Work in process 16,000 14,000 Finished goods 30,000 45,000 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Instructions a. Prepare a schedule of the cost of goods manufactured for October 2022. a. CGM $577,800 b. Prepare a correct income statement for October 2022. b. NI $1,000

Prepare a cost of goods manufactured schedule and a correct income statement. P2.46A (LO 4) Tombert Company is a manufacturer of computers. Its controller resigned in October 2022. An inexperienced assistant accountant has prepared the following income statement for the month of October 2022. TOMBERT COMPANY Income Statement For the Month Ended October 31, 2022 Sales (net) $780,000 Less: Operating expenses Raw materials purchases $264,000 Direct labour cost 190,000 Advertising expense 90,000 Selling and administrative salaries 75,000 Rent on factory facilities 60,000 Depreciation on sales equipment 45,000 Depreciation on factory equipment 31,000 Indirect labour cost 28,000 Utilities expense 12,000 Insurance expense 8,000 803,000 Net loss $ (23,000) Prior to October 2022, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As his friend, he has asked you to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired the following additional information. 1. Inventory balances at the beginning and end of October were as follows: October 1 October 31 Raw materials $18,000 $29,000 Work in process 16,000 14,000 Finished goods 30,000 45,000 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Instructions a. Prepare a schedule of the cost of goods manufactured for October 2022. a. CGM $577,800 b. Prepare a correct income statement for October 2022. b. NI $1,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

please explain in steps, thanks

Prepare a cost of goods manufactured schedule and a correct income statement. P2.46A (LO 4) Tombert Company is a manufacturer of computers. Its controller resigned in October 2022. An inexperienced assistant accountant has prepared the following income statement for the month of October 2022. TOMBERT COMPANY Income Statement For the Month Ended October 31, 2022 Sales (net) $780,000 Less: Operating expenses Raw materials purchases $264,000 Direct labour cost 190,000 Advertising expense 90,000 Selling and administrative salaries 75,000 Rent on factory facilities 60,000 Depreciation on sales equipment 45,000 Depreciation on factory equipment 31,000 Indirect labour cost 28,000 Utilities expense 12,000 Insurance expense 8,000 803,000 Net loss $ (23,000) Prior to October 2022, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As his friend, he has asked you to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired the following additional information. 1. Inventory balances at the beginning and end of October were as follows: October 1 October 31 Raw materials $18,000 $29,000 Work in process 16,000 14,000 Finished goods 30,000 45,000 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Instructions a. Prepare a schedule of the cost of goods manufactured for October 2022. a. CGM $577,800 b. Prepare a correct income statement for October 2022. b. NI $1,000
Transcribed Image Text:Prepare a cost of goods manufactured schedule and a correct income statement. P2.46A (LO 4) Tombert Company is a manufacturer of computers. Its controller resigned in October 2022. An inexperienced assistant accountant has prepared the following income statement for the month of October 2022. TOMBERT COMPANY Income Statement For the Month Ended October 31, 2022 Sales (net) $780,000 Less: Operating expenses Raw materials purchases $264,000 Direct labour cost 190,000 Advertising expense 90,000 Selling and administrative salaries 75,000 Rent on factory facilities 60,000 Depreciation on sales equipment 45,000 Depreciation on factory equipment 31,000 Indirect labour cost 28,000 Utilities expense 12,000 Insurance expense 8,000 803,000 Net loss $ (23,000) Prior to October 2022, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As his friend, he has asked you to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired the following additional information. 1. Inventory balances at the beginning and end of October were as follows: October 1 October 31 Raw materials $18,000 $29,000 Work in process 16,000 14,000 Finished goods 30,000 45,000 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Instructions a. Prepare a schedule of the cost of goods manufactured for October 2022. a. CGM $577,800 b. Prepare a correct income statement for October 2022. b. NI $1,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Administration and Procedures
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS