Alwar Brothers is a small, family-owned business that produces animal feed for dairy farms. The administrative offices and manufacturing plant of Alwar share the same building. Financial records provided by the company for the most recent fiscal year show the following (all amounts in thousands of dollars): Sales revenue Direct materials purchases Administrative costs Utilities (Note A) Indirect factory labor Marketing costs Direct labor Depreciation (Note B) Property taxes (Note C) Factory supplies Factory supervision Finished goods inventory, December 31 Finished goods inventory, January 1 Work-in-process inventory, January 1 Work-in-process inventory, December 31 Direct materials inventory, December 31 Direct materials inventory, January 1 Notes: A. 80% of this amount is for the factory. B. 85% of this amount is for the factory. C. 60% of this amount is for the factory. Required: a. Prepare a cost of goods sold statement. b. Prepare an income statement. (5000) $ 26,985.0 3,958.0 2,876.0 2,710.0 2,466.0 2,432.0 2,454.0 701.0 101.0 2,380.0 *380* 2,370.0 370.0 2,315.0 343.0 2,211.0 FELLO 46.0 40.0 41.0 161 16.1 14.2 13.1 10.2

Alwar Brothers is a small, family-owned business that produces animal feed for dairy farms. The administrative offices and manufacturing plant of Alwar share the same building. Financial records provided by the company for the most recent fiscal year show the following (all amounts in thousands of dollars): Sales revenue Direct materials purchases Administrative costs Utilities (Note A) Indirect factory labor Marketing costs Direct labor Depreciation (Note B) Property taxes (Note C) Factory supplies Factory supervision Finished goods inventory, December 31 Finished goods inventory, January 1 Work-in-process inventory, January 1 Work-in-process inventory, December 31 Direct materials inventory, December 31 Direct materials inventory, January 1 Notes: A. 80% of this amount is for the factory. B. 85% of this amount is for the factory. C. 60% of this amount is for the factory. Required: a. Prepare a cost of goods sold statement. b. Prepare an income statement. (5000) $ 26,985.0 3,958.0 2,876.0 2,710.0 2,466.0 2,432.0 2,454.0 701.0 101.0 2,380.0 380 2,370.0 370.0 2,315.0 343.0 2,211.0 FELLO 46.0 40.0 41.0 161 16.1 14.2 13.1 10.2

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 58P: Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners...

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Alwar Brothers is a small, family-owned business that produces animal feed for dairy farms. The administrative offices and manufacturing plant of Alwar share the same building. Financial records provided by the company for the most recent fiscal year show the following (all amounts in thousands of dollars): Sales revenue Direct materials purchases Administrative costs Utilities (Note A) Indirect factory labor Marketing costs Direct labor Depreciation (Note B) Property taxes (Note C) Factory supplies Factory supervision Finished goods inventory, December 31 Finished goods inventory, January 1 Work-in-process inventory, January 1 Work-in-process inventory, December 31 Direct materials inventory, December 31 Direct materials inventory, January 1 Notes: A. 80% of this amount is for the factory. B. 85% of this amount is for the factory. C. 60% of this amount is for the factory. Required: a. Prepare a cost of goods sold statement. b. Prepare an income statement. ($000) $ 8,985.0 2,158.0…
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