Question 3 The following data (in thousands of dollars) have been taken from the accounting records of Larner Corporation for the year just completed: Sales $870 Purchases of raw materials* $110 Direct labour $130 Manufacturing overhead $200 Administrative expenses $ 160 Selling expenses $140 Raw materials inventory, beginning* $30 Raw materials inventory, ending* $60 Work in process inventory, beginning $50 Work in process inventory, ending $10 Finished goods inventory, beginning $150 Finished goods inventory, ending $140 Required: ( a.) Prepare a schedule of cost of goods manufactured in good form. (b.) Compute the cost of goods sold. (c.) Using data from your answers above as needed, prepare an income statement in good form.
Question 3 The following data (in thousands of dollars) have been taken from the accounting records of Larner Corporation for the year just completed: Sales $870 Purchases of raw materials* $110 Direct labour $130 Manufacturing overhead $200 Administrative expenses $ 160 Selling expenses $140 Raw materials inventory, beginning* $30 Raw materials inventory, ending* $60 Work in process inventory, beginning $50 Work in process inventory, ending $10 Finished goods inventory, beginning $150 Finished goods inventory, ending $140 Required: ( a.) Prepare a schedule of cost of goods manufactured in good form. (b.) Compute the cost of goods sold. (c.) Using data from your answers above as needed, prepare an income statement in good form.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Question 3 The following data (in thousands of dollars) have been taken from the accounting
records of Larner Corporation for the year just completed: Sales $870 Purchases of raw
materials* $110 Direct labour $130 Manufacturing overhead $200 Administrative expenses $
160 Selling expenses $140 Raw materials inventory, beginning* $30 Raw materials inventory,
ending* $60 Work in process inventory, beginning $50 Work in process inventory, ending $10
Finished goods inventory, beginning $150 Finished goods inventory, ending $140 Required: (
a.) Prepare a schedule of cost of goods manufactured in good form. (b.) Compute the cost
of goods sold. (c.) Using data from your answers above as needed, prepare an income
statement in good form.
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