Prepare an income statement for Bubba Manufacturing for the year ended June 30, 2020, clearly showing cost of goods sold
Bubba Manufacturing Company provided the following information for the fiscal year to June 30, 2020:
Inventories 01/07/2019 30/06/2020
Direct Materials $72,000 $65,000
Work-in-Process 107,000 128,000
Finished Goods 149,500 141,700
Other information:
Office cleaner’s wages 4,500
Sales Revenue 1,031,000
Raw materials purchased 235,000
Factory wages 239,700
Indirect materials 23,500
Delivery truck driver’s wages 15,400
Indirect labor 9,500
Insurance1 60,000
Depreciation on delivery truck 7,250
Utilities2 118,750
Administrative salaries 41,250
Special Design Costs 5,000
Selling expenses 9,000
Sales Commission 2% of gross profit
1 Of the total insurance, 66⅔% relates to the factory facilities & 33⅓% relates to general & administrative costs.
2 Of the total utilities, 80% relates to the manufacturing facilities & 20% relates to the office area.
Requirements:
Prepare an income statement for Bubba Manufacturing for the year ended June 30, 2020, clearly showing cost of goods sold.
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