Kappa Manufacturing Company had the following account balances for the year ending December 31, 2022: Direct materials inventory (Jan. 1) Direct materials inventory (Dec. 31) Work-in-process inventory (Jan. 1) Work-in-process inventory (Dec. 31) Finished goods inventory (Jan. 1) Finished goods inventory (Dec. 31) Direct materials purchased Indirect materials used Direct manufacturing labor Indirect manufacturing labor Property taxes on plant Plant supervisory salaries Depreciation of office equipment Miscellaneous plant overhead Plant supplies used Revenues General office expenses $30,000 50,000 40,400 72,000 60,000 55,000 120,000 4,000 70,000 66,000 5,800 12,000 33,600 35,000 3,400 1,200,000 15,400 Required: a. Prepare a cost of goods manufactured schedule for the year. b. Prepare the income statement for the year. C. Give two examples of cost drivers for each of the following costs: 1) Indirect manufacturing labor 2) Plant supervisory salaries

Kappa Manufacturing Company had the following account balances for the year ending December 31, 2022: Direct materials inventory (Jan. 1) Direct materials inventory (Dec. 31) Work-in-process inventory (Jan. 1) Work-in-process inventory (Dec. 31) Finished goods inventory (Jan. 1) Finished goods inventory (Dec. 31) Direct materials purchased Indirect materials used Direct manufacturing labor Indirect manufacturing labor Property taxes on plant Plant supervisory salaries Depreciation of office equipment Miscellaneous plant overhead Plant supplies used Revenues General office expenses $30,000 50,000 40,400 72,000 60,000 55,000 120,000 4,000 70,000 66,000 5,800 12,000 33,600 35,000 3,400 1,200,000 15,400 Required: a. Prepare a cost of goods manufactured schedule for the year. b. Prepare the income statement for the year. C. Give two examples of cost drivers for each of the following costs: 1) Indirect manufacturing labor 2) Plant supervisory salaries

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Kappa Manufacturing Company had the following account balances for the year ending
December 31, 2022:
Direct materials inventory (Jan. 1)
Direct materials inventory (Dec. 31)
Work-in-process inventory (Jan. 1)
Work-in-process inventory (Dec. 31)
Finished goods inventory (Jan. 1)
Finished goods inventory (Dec. 31)
Direct materials purchased
Indirect materials used
Direct manufacturing labor
Indirect manufacturing labor
Property taxes on plant
Plant supervisory salaries
Depreciation of office equipment
Miscellaneous plant overhead
Plant supplies used
Revenues
General office expenses
$30,000
50,000
40,400
72,000
60,000
55,000
120,000
4,000
70,000
66,000
5,800
12,000
33,600
35,000
3,400
1,200,000
15,400
Required:
a. Prepare a cost of goods manufactured schedule for the year.
b. Prepare the income statement for the year.
C. Give two examples of cost drivers for each of the following costs:
1) Indirect manufacturing labor
2) Plant supervisory salaries

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