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Marin Company is a manufacturer of smartphones. Its controller resigned in October 2025. An inexperienced assistant accountant has prepared the following income statement for the month of October 2025. Marin Company Income Statement For the Month Ended October 31, 2025 Sales revenue $826,800 Less: Operating expenses Raw materials purchases $279,840 Direct labor cost 201,400 Advertising expense 95,400 Selling and administrative salaries 79,500 Rent on factory facilities 63,600 Depreciation on sales equipment 47,700 Depreciation on factory equipment 32,860 Indirect labor cost 29,680 Utilities expense 12,720 Insurance expense Net loss 8,480 851,180 $(24,380) Prior to October 2025, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows. 1. Inventory balances at the beginning and end of October were: October 1 October 31 Raw materials $19,080 $30,740 Work in process 21,200 14,840 Finished goods 31,800 53,000 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. (a) Prepare a schedule of cost of goods manufactured for October 2025. (Assume that all raw materials used were direct materials.) MARIN COMPANY Cost of Goods Manufactured Schedule

Marin Company is a manufacturer of smartphones. Its controller resigned in October 2025. An inexperienced assistant accountant has prepared the following income statement for the month of October 2025. Marin Company Income Statement For the Month Ended October 31, 2025 Sales revenue $826,800 Less: Operating expenses Raw materials purchases $279,840 Direct labor cost 201,400 Advertising expense 95,400 Selling and administrative salaries 79,500 Rent on factory facilities 63,600 Depreciation on sales equipment 47,700 Depreciation on factory equipment 32,860 Indirect labor cost 29,680 Utilities expense 12,720 Insurance expense Net loss 8,480 851,180 $(24,380) Prior to October 2025, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows. 1. Inventory balances at the beginning and end of October were: October 1 October 31 Raw materials $19,080 $30,740 Work in process 21,200 14,840 Finished goods 31,800 53,000 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. (a) Prepare a schedule of cost of goods manufactured for October 2025. (Assume that all raw materials used were direct materials.) MARIN COMPANY Cost of Goods Manufactured Schedule

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
ChapterE: Departmental Accounting
Section: Chapter Questions
Problem 3P
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Marin Company is a manufacturer of smartphones. Its controller resigned in October 2025. An inexperienced assistant accountant has prepared the following income statement for the month of October 2025. Marin Company Income Statement For the Month Ended October 31, 2025 Sales revenue $826,800 Less: Operating expenses Raw materials purchases $279,840 Direct labor cost 201,400 Advertising expense 95,400 Selling and administrative salaries 79,500 Rent on factory facilities 63,600 Depreciation on sales equipment 47,700 Depreciation on factory equipment 32,860 Indirect labor cost 29,680 Utilities expense 12,720 Insurance expense Net loss 8,480 851,180 $(24,380) Prior to October 2025, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows. 1. Inventory balances at the beginning and end of October were: October 1 October 31 Raw materials $19,080 $30,740 Work in process 21,200 14,840 Finished goods 31,800 53,000 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. (a) Prepare a schedule of cost of goods manufactured for October 2025. (Assume that all raw materials used were direct materials.) MARIN COMPANY Cost of Goods Manufactured Schedule
Transcribed Image Text:Marin Company is a manufacturer of smartphones. Its controller resigned in October 2025. An inexperienced assistant accountant has prepared the following income statement for the month of October 2025. Marin Company Income Statement For the Month Ended October 31, 2025 Sales revenue $826,800 Less: Operating expenses Raw materials purchases $279,840 Direct labor cost 201,400 Advertising expense 95,400 Selling and administrative salaries 79,500 Rent on factory facilities 63,600 Depreciation on sales equipment 47,700 Depreciation on factory equipment 32,860 Indirect labor cost 29,680 Utilities expense 12,720 Insurance expense Net loss 8,480 851,180 $(24,380) Prior to October 2025, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows. 1. Inventory balances at the beginning and end of October were: October 1 October 31 Raw materials $19,080 $30,740 Work in process 21,200 14,840 Finished goods 31,800 53,000 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. (a) Prepare a schedule of cost of goods manufactured for October 2025. (Assume that all raw materials used were direct materials.) MARIN COMPANY Cost of Goods Manufactured Schedule
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