ACCT212-EXTRA EXERCISE Question 1 Salma Sweet manufactures ice cream to be distributed around the restaurants in Yanbu. Some of its costs from the current year include: Sugar and milk use in manufacturing of ice cream Depreciation on ice cream machine 1. Factory supervisor salary Ice cream flavors of strawberry, chocolate and vanilla Salary of the worker mixing the ice cream Sales Revenue Insurance expenses Advertising expenses Rent on the factory building Utilities expenses Factory maintenance salary Electricity bill for factory Delivery expenses Salary of factory cleaners Factory supplies Boxes and ice cream containers for selling Depreciation expenses for office building Petrol/ gasoline expenses In addition, the following information is available at the end of the year January 1 December 31 Raw material Work In Process Finished Goods Required: $12,000 $120,000 $13,000 15,000 $18,000 $23,000 $34,000 $89,000 $525,000 $36,000 $12,000 $24,000 $12,000 $8,000 $7,000 $6,000 $5,000 $5,000 $6,000 $4,000 $15,000 $8,000 $10,500 $15,000 2. 40% of the insurance expenses is for factory building and the remaining for office building 3. Out of the total utilities expenses, 55% is allocated for factory building and the remaining for office building. 4. 60% of petrol/gasoline expenses is used in office buildings and the remaining amount is used in factory buildings. Prepare a schedule of cost of goods manufactured for the company. vb. Prepare the company income statement.
ACCT212-EXTRA EXERCISE Question 1 Salma Sweet manufactures ice cream to be distributed around the restaurants in Yanbu. Some of its costs from the current year include: Sugar and milk use in manufacturing of ice cream Depreciation on ice cream machine 1. Factory supervisor salary Ice cream flavors of strawberry, chocolate and vanilla Salary of the worker mixing the ice cream Sales Revenue Insurance expenses Advertising expenses Rent on the factory building Utilities expenses Factory maintenance salary Electricity bill for factory Delivery expenses Salary of factory cleaners Factory supplies Boxes and ice cream containers for selling Depreciation expenses for office building Petrol/ gasoline expenses In addition, the following information is available at the end of the year January 1 December 31 Raw material Work In Process Finished Goods Required: $12,000 $120,000 $13,000 15,000 $18,000 $23,000 $34,000 $89,000 $525,000 $36,000 $12,000 $24,000 $12,000 $8,000 $7,000 $6,000 $5,000 $5,000 $6,000 $4,000 $15,000 $8,000 $10,500 $15,000 2. 40% of the insurance expenses is for factory building and the remaining for office building 3. Out of the total utilities expenses, 55% is allocated for factory building and the remaining for office building. 4. 60% of petrol/gasoline expenses is used in office buildings and the remaining amount is used in factory buildings. Prepare a schedule of cost of goods manufactured for the company. vb. Prepare the company income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:ACCT212 EXTRA EXERCISE
Question 1
Salma Sweet manufactures ice cream to be distributed around the restaurants in
Yanbu. Some of its costs from the current year include:
Sugar and milk use in manufacturing of ice cream
Depreciation on ice cream machine
1.
Factory supervisor salary
Ice cream flavors of strawberry, chocolate and
vanilla
Salary of the worker mixing the ice cream
Sales Revenue
Insurance expenses
Advertising expenses
Rent on the factory building
Utilities expenses
Factory maintenance salary
Electricity bill for factory
Delivery expenses
Salary of factory cleaners
Factory supplies
Boxes and ice cream containers for selling
Depreciation expenses for office building
Petrol/ gasoline expenses
In addition, the following information is available at the end of the year
January 1
December 31
Raw material
Work In Process
Finished Goods
Required:
$12,000
$120,000
$13,000
15,000
$18,000
$23,000
$34,000
$89,000
$525,000
$36,000
$12,000
$24,000
$12,000
$8,000
$7,000
$6,000
$5,000
$5,000
$6,000
$4,000
$15,000
$8,000
$10,500
$15,000
2. 40% of the insurance expenses is for factory building and the remaining for
office building
3. Out of the total utilities expenses, 55% is allocated for factory building and the
remaining for office building.
4. 60% of petrol/gasoline expenses is used in office buildings and the remaining
amount is used in factory buildings.
Prepare a schedule of cost of goods manufactured for the company.
b. Prepare the company income statement.
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