Problem 2-81 (Algo) Reconstruct Financial Statements (LO 2-1, 6) Omira Cycle Parts manufactures components for motorcycle and off-road vehicles. The company's administrative and manufacturing operations share the company's only building. Eighty percent of the building is used for manufacturing, and the remainder is used for administrative activities. Indirect labor is 8 percent of direct labor. As the cost analyst at Omira, you have gathered the following information for the year ended December 31: Administrative salaries Attorney fees to settle zoning dispute Building depreciation (manufacturing portion only) Cost of goods manufactured Direct materials inventory, December 31 Direct materials purchased during the year Direct materials used Distribution costs Finished goods inventory, January 1 Finished goods inventory, December 31 Insurance (on plant machinery) Maintenance (on plant machinery) Marketing costs Other plant costs Plant utilities Sales revenue Taxes on manufacturing property Total (direct and indirect) labor Work-in-process inventory, January 1 Work-in-process inventory, December 31 Required: a. Prepare a cost of goods manufactured and sold statement. b. Prepare an income statement. $ 974,000 128,800 921,200 14,019,600 1,254,000 5,054,000 5,363,400 23,800 1,134,000 1,274,000 280,000 183,400 532,000 424,800 534,800 22,764,000 208,000 6,085,800 376,600 358,400 Complete this question by entering your answers in the tabs below. COGM and COGS Stmts Income Stmt Prepare a cost of goods manufactured and sold statement and an income statement. Omira Cycle Parts Cost of Goods Manufactured and Sold Statement Eartha Van Edin 24
Problem 2-81 (Algo) Reconstruct Financial Statements (LO 2-1, 6) Omira Cycle Parts manufactures components for motorcycle and off-road vehicles. The company's administrative and manufacturing operations share the company's only building. Eighty percent of the building is used for manufacturing, and the remainder is used for administrative activities. Indirect labor is 8 percent of direct labor. As the cost analyst at Omira, you have gathered the following information for the year ended December 31: Administrative salaries Attorney fees to settle zoning dispute Building depreciation (manufacturing portion only) Cost of goods manufactured Direct materials inventory, December 31 Direct materials purchased during the year Direct materials used Distribution costs Finished goods inventory, January 1 Finished goods inventory, December 31 Insurance (on plant machinery) Maintenance (on plant machinery) Marketing costs Other plant costs Plant utilities Sales revenue Taxes on manufacturing property Total (direct and indirect) labor Work-in-process inventory, January 1 Work-in-process inventory, December 31 Required: a. Prepare a cost of goods manufactured and sold statement. b. Prepare an income statement. $ 974,000 128,800 921,200 14,019,600 1,254,000 5,054,000 5,363,400 23,800 1,134,000 1,274,000 280,000 183,400 532,000 424,800 534,800 22,764,000 208,000 6,085,800 376,600 358,400 Complete this question by entering your answers in the tabs below. COGM and COGS Stmts Income Stmt Prepare a cost of goods manufactured and sold statement and an income statement. Omira Cycle Parts Cost of Goods Manufactured and Sold Statement Eartha Van Edin 24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 2-81 (Algo) Reconstruct Financial Statements (LO 2-1, 6)
Omira Cycle Parts manufactures components for motorcycle and off-road vehicles. The company's administrative and manufacturing
operations share the company's only building. Eighty percent of the building is used for manufacturing, and the remainder is used for
administrative activities. Indirect labor is 8 percent of direct labor.
As the cost analyst at Omira, you have gathered the following information for the year ended December 31:
Administrative salaries
Attorney fees to settle zoning dispute
Building depreciation (manufacturing portion only)
Cost of goods manufactured
Direct materials inventory, December 31
Direct materials purchased during the year
Direct materials used
Distribution costs
Finished goods inventory, January 1
Finished goods inventory, December 31
Insurance (on plant machinery)
Maintenance (on plant machinery)
Marketing costs
Other plant costs
Plant utilities
Sales revenue
Taxes on manufacturing property
Total (direct and indirect) labor
Work-in-process inventory, January 1
Work-in-process inventory, December 31
Required:
a. Prepare a cost of goods manufactured and sold statement.
b. Prepare an income statement.
$ 974,000
128,800
921,200
14,019,600
1,254,000
5,054,000
5,363,400
23,800
1,134,000
1,274,000
280,000
183,400
532,000
424,800
534,800
22,764,000
208,000
6,085,800
376,600
358,400
Complete this question by entering your answers in the tabs below.
COGM and
COGS Stmts
Income Stmt
Prepare a cost of goods manufactured and sold statement and an income statement.
Omira Cycle Parts
Cost of Goods Manufactured and Sold Statement
Eartha Van Edin 24
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