ALABAMA CORPORATION Goals and Objectives Review of basic terminology Review basic accounting and journal entries to reflect the flow of costs Review preparation of income statement and supporting schedules for manufacturer given end-of-year information The company manufactures a single product, cleverly named Product X. The following information is available for the calendar year 2018 just completed, during which they produced and sold 200,000 units. Sales for the year was $2,400,000. During the year, the company paid a sales commission of 5 percent of sales. The corporate income tax rate was 20%. Direct materials purchases $300,000 Direct labor 140,000 Depreciation - factory equipment 45,000 Depreciation - factory building 30,000 Depreciation - headquarters building 50,000 Factory insurance 15,000 Property taxes: Factory 20,000 Headquarters 18,000 Utilities - factory 34,000 Utilities – sales 1,800 Administrative salaries 150,000 Indirect labor salaries 156,000 Sales office salaries 90,000 Inventory Information 12/31/2017 12/31/2018 Raw materials $124,000 $152,000 Work in process 124,000 130,000 Finished Goods 109,000 118,904 REQUIRED: 1. Post all of the above a summary entries in T accounts.
ALABAMA CORPORATION Goals and Objectives Review of basic terminology Review basic accounting and
REQUIRED: 1. Post all of the above a summary entries in T accounts.
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