East Ferry Tool & Die, a manufacturer of parts for agricultural equipment, provides the following financial information for the most recent fiscal year (all costs are in thousands of dollars): ($000)Inventories: As of January 1: Direct materials$ 137Work-in-process146Finished goods714As of December 31: Direct materials$ 144Work-in-process139Finished goods733Other amounts (for the year): Administrative costs2,440Direct labor4,446Direct material purchases5,574Indirect plant labor2,458Indirect plant supplies742Machine depreciation4,851Marketing costs1,074Plant depreciation1,325Plant supervision1,046Plant utilities723Property taxes on plant and equipment371Sales revenue29,234Required:Prepare a cost of goods sold statement.Prepare an income statement.Complete this question by entering your answers in the tabs below. Prepare an income statement.Note: Enter your answers in thousands of dollars (i.e., 234,000 should be entered as 234).East Ferry Tool & DieIncome StatementFor the Year Ended December 31($000)Total marketing and administrative costs< COGS Stmt0Income Stmt > Indirect plant laborIndirect plant suppliesProperty taxes on plant and equipmentTotal manufacturing overheadTotal manufacturing costsTotal cost of work in process during the yearLess: Work in process, December 31Costs of goods manufactured during the yearBeginning finished goods, January 1Finished goods inventory available for saleLess: Ending finished goods inventory, December 31Cost of goods sold32,458742371>>>10,19120,204139714733

Cost of goods sold statement :— It is the statement that shows cost of goods sold during the period.…

Answered: East Ferry Tool & Die, a manufacturer…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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East Ferry Tool & Die, a manufacturer of parts for agricultural equipment, provides the following financial information for the most recent fiscal year (all costs are in thousands of dollars):

	($000)
Inventories:
As of January 1:
Direct materials	$ 137
Work-in-process	146
Finished goods	714
As of December 31:
Direct materials	$ 144
Work-in-process	139
Finished goods	733
Other amounts (for the year):
Administrative costs	2,440
Direct labor	4,446
Direct material purchases	5,574
Indirect plant labor	2,458
Indirect plant supplies	742
Machine depreciation	4,851
Marketing costs	1,074
Plant depreciation	1,325
Plant supervision	1,046
Plant utilities	723
Property taxes on plant and equipment	371
Sales revenue	29,234

Required:

Prepare a cost of goods sold statement.
Prepare an income statement.

Complete this question by entering your answers in the tabs below.

Prepare an income statement.
Note: Enter your answers in thousands of dollars (i.e., 234,000 should be entered as 234).
East Ferry Tool & Die
Income Statement
For the Year Ended December 31
($000)
Total marketing and administrative costs
< COGS Stmt
0
Income Stmt >

Indirect plant labor
Indirect plant supplies
Property taxes on plant and equipment
Total manufacturing overhead
Total manufacturing costs
Total cost of work in process during the year
Less: Work in process, December 31
Costs of goods manufactured during the year
Beginning finished goods, January 1
Finished goods inventory available for sale
Less: Ending finished goods inventory, December 31
Cost of goods sold
3
2,458
742
371
>>>
10,191
20,204
139
714
733

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