The following data pertain to Babor Company for the fiscal year ended December 31: Prior December Current 31 December31 Purchases of direct materials Direct Labor Indirect labor Factory insurance Deprciation factory Repairs & maintenance - factory Marketing expenses General & administrative expenses Direct materials inventory $23,000 Work-in-process inventory 13,000 Finished goods inventory 17,000 $165,000 114,000 45,000 8,000 33,000 11,000 144,000 86,000 Sales in the current year were $625,000. Required: Prepare a schedule of cost of goods manufactured and an income statement for the current year for Barbor Company.
The following data pertain to Babor Company for the fiscal year ended December 31: Prior December Current 31 December31 Purchases of direct materials Direct Labor Indirect labor Factory insurance Deprciation factory Repairs & maintenance - factory Marketing expenses General & administrative expenses Direct materials inventory $23,000 Work-in-process inventory 13,000 Finished goods inventory 17,000 $165,000 114,000 45,000 8,000 33,000 11,000 144,000 86,000 Sales in the current year were $625,000. Required: Prepare a schedule of cost of goods manufactured and an income statement for the current year for Barbor Company.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:The following data pertain to Babor Company for the fiscal year ended December 31:
Current
Prior December
31
December31
Purchases of direct
materials
Direct Labor
Indirect labor
Factory insurance
Deprciation factory
Repairs & maintenance -
factory
Marketing expenses
General & administrative
expenses
Direct materials inventory $23,000
Work-in-process inventory
13,000
Finished goods inventory
17,000
$165,000
114,000
45,000
8,000
33,000
11,000
144,000
86,000
Sales in the current year were $625,000.
Required: Prepare a schedule of cost of goods manufactured and an income statement for the current year for Barbor
Company.
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