7 Pat Fike, accountant for Nozama Company, prepared the following amounts to include on thefinancial statements for the period ending August 31, 2023.SalesPurchases of materialsManufacturing laborAdvertisingAdministrative travelManufacturing utilitiesFacility rentalDepreciationSales commissionsInsuranceOffice utilitiesManagement salaries●●●●The purchase of materials included 20% indirect materials.40% of the manufacturing labor was for indirect manufacturing labour.The facility was used partly for the sales and administrative team (20%).30% of the depreciation expense was related to delivery trucks.60% of the insurance relates to manufacturing activities.40% of the management salaries relate to manufacturing activities.$1,200,000250,000270,00037,00027,00049,00090,00060,00031,00040,00025,000380,000Furthermore, Fike compiled the following information with respect to inventories for the period(note that the company does not maintain inventories of indirect materials).Direct materialsWork-in-progressFinished goodsBeginning$ 6,0009,00011,000Ending$8,00010,0007,000Required:1. Prepare a cost of goods manufactured statement for the period.2. Prepare an income statement for the period - ensure you show the full COGS in theincome statement.

Name: 7 Pat Fike, accountant for Nozama Company, prepared the following amou
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Description: 7 Pat Fike, accountant for Nozama Company, prepared the following amounts to include on thefinancial statements for the period ending August 31, 2023.SalesPurchases of materialsManufacturing laborAdvertisingAdministrative travelManufacturing utilitie

An income statement stands for the statement that shows profits and loss of the firm, its revenue…

Answered: Pat Fike, accountant for Nozama…

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Pat Fike, accountant for Nozama Company, prepared the following amounts to include on the financial statements for the period ending August 31, 2023.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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