Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances the beginning and end of 20x1. Inventory Classification January 1, 20x1 December 31, 20x1 Raw material $ 55,000 $ 70,000 115,000 Work in process Finished goods During 20x1, the company purchased $240,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows: Indirect material $ 11,000 Indirect labor 26,000 Depreciation on plant and equipment 100,000 Utilities 25,000 Other 120,000 160,000 165,000 3. Prepare an income statement. 30,000 Sales revenue was $1,105,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm's tax rate is 40 percent. EX 2-29 (Algo) Part 3: Prepare an income statement.
Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances the beginning and end of 20x1. Inventory Classification January 1, 20x1 December 31, 20x1 Raw material $ 55,000 $ 70,000 115,000 Work in process Finished goods During 20x1, the company purchased $240,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows: Indirect material $ 11,000 Indirect labor 26,000 Depreciation on plant and equipment 100,000 Utilities 25,000 Other 120,000 160,000 165,000 3. Prepare an income statement. 30,000 Sales revenue was $1,105,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm's tax rate is 40 percent. EX 2-29 (Algo) Part 3: Prepare an income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1.
Inventory Classification January 1, 20x1 December 31, 20x1
Raw material
$ 55,000
$ 70,000
Work in process
120,000
115,000
Finished goods
During 20x1, the company purchased $240,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows:
Indirect material
$ 11,000
Indirect labor
Depreciation on plant and equipment 100,000
Utilities
25,000
Other
30,000
160,000
165,000
3. Prepare an income statement.
26,000
Sales revenue was $1,105,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm's tax rate is 40 percent.
EX 2-29 (Algo) Part 3: Prepare an income statement.
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