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Santos Company is a manufacturing firm that has the following inventory balances: Raw materials Work-in-Process Finished goods $ 1/1/20x1 12/31/20x1 24,000 73,000 27,000 56,000 42,000 The following transactions were recorded for the year: a. Raw materials contain both direct and indirect materials. $416,000 raw materials were purchased. b. Direct material used in production, $370,000; indirect materials used, $40,000. ? c. The following employee costs were incurred: direct labor, $414,000; indirect labor, $60,000; and administrative salaries, $212,000. d. Selling costs, $140,000. e. Factory utility costs, $20,000. f. Depreciation for the year was $81,000 of which $73,000

Santos Company is a manufacturing firm that has the following inventory balances: Raw materials Work-in-Process Finished goods $ 1/1/20x1 12/31/20x1 24,000 73,000 27,000 56,000 42,000 The following transactions were recorded for the year: a. Raw materials contain both direct and indirect materials. $416,000 raw materials were purchased. b. Direct material used in production, $370,000; indirect materials used, $40,000. ? c. The following employee costs were incurred: direct labor, $414,000; indirect labor, $60,000; and administrative salaries, $212,000. d. Selling costs, $140,000. e. Factory utility costs, $20,000. f. Depreciation for the year was $81,000 of which $73,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Santos Company is a manufacturing firm that has the following inventory balances: Raw materials Work-in-Process Finished goods $ 1/1/20x1 12/31/20x1 24,000 73,000 27,000 The following transactions were recorded for the year: a. Raw materials contain both direct and indirect materials. $416,000 raw materials were purchased. b. Direct material used in production, $370,000; indirect materials used, $40,000. c. The following employee costs were incurred: direct labor, $414,000; indirect labor, $60,000; and administrative salaries, $212,000. d. Selling costs, $140,000. e. Factory utility costs, $20,000. f. Depreciation for the year was $81,000 of which $73,000 is related to factory operations and $8,000 is related to selling, general, and administrative activities. g. Sales for the year totaled $1,416,000 Required: 56,000 42,000 1. Prepare the schedule of cost of goods manufactured. 2. Prepare the income statement. 3. How would ending inventories be presented in which financial statement and for what amount? BER O HOM ? P
Transcribed Image Text:Santos Company is a manufacturing firm that has the following inventory balances: Raw materials Work-in-Process Finished goods $ 1/1/20x1 12/31/20x1 24,000 73,000 27,000 The following transactions were recorded for the year: a. Raw materials contain both direct and indirect materials. $416,000 raw materials were purchased. b. Direct material used in production, $370,000; indirect materials used, $40,000. c. The following employee costs were incurred: direct labor, $414,000; indirect labor, $60,000; and administrative salaries, $212,000. d. Selling costs, $140,000. e. Factory utility costs, $20,000. f. Depreciation for the year was $81,000 of which $73,000 is related to factory operations and $8,000 is related to selling, general, and administrative activities. g. Sales for the year totaled $1,416,000 Required: 56,000 42,000 1. Prepare the schedule of cost of goods manufactured. 2. Prepare the income statement. 3. How would ending inventories be presented in which financial statement and for what amount? BER O HOM ? P
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