The following data refer to Nani’s Fashions for the current year: Sales Revenues $475 000 Work in process inventory, 31 December 15 000 Work in process inventory, 1 January 20 000 Selling and administrative expenses 75 000 Income tax expense 45 000 Purchase of raw materials 90 000 Raw materials inventory, 31 December 12 500 Raw material inventory. 1 January 20 000 Direct labour 100 000 Electricity: plant 20 000 Depreciation plant and equipment 30 000 Finished goods inventory, 31 December 25 000 Finished goods inventory, 1 January 10 000 Indirect material 5 000 Indirect labour 7 500 Other manufacturing overhead 40 000 Required: Prepare the schedule of cost of goods manufactured for Nani’s fashion. Prepare the schedule of cost of goods sold for Nani’s Fashions and explain the information provided by the schedule of cost of goods sold. Prepare an income statement for the current year.
The following data refer to Nani’s Fashions for the current year: Sales Revenues $475 000 Work in process inventory, 31 December 15 000 Work in process inventory, 1 January 20 000 Selling and administrative expenses 75 000 Income tax expense 45 000 Purchase of raw materials 90 000 Raw materials inventory, 31 December 12 500 Raw material inventory. 1 January 20 000 Direct labour 100 000 Electricity: plant 20 000 Depreciation plant and equipment 30 000 Finished goods inventory, 31 December 25 000 Finished goods inventory, 1 January 10 000 Indirect material 5 000 Indirect labour 7 500 Other manufacturing overhead 40 000 Required: Prepare the schedule of cost of goods manufactured for Nani’s fashion. Prepare the schedule of cost of goods sold for Nani’s Fashions and explain the information provided by the schedule of cost of goods sold. Prepare an income statement for the current year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following data refer to Nani’s Fashions for the current year:
| Sales Revenues | $475 000 |
| Work in process inventory, 31 December | 15 000 |
| Work in process inventory, 1 January | 20 000 |
| Selling and administrative expenses | 75 000 |
| Income tax expense | 45 000 |
| Purchase of raw materials | 90 000 |
| Raw materials inventory, 31 December | 12 500 |
| Raw material inventory. 1 January | 20 000 |
| Direct labour | 100 000 |
| Electricity: plant | 20 000 |
| 30 000 | |
| Finished goods inventory, 31 December | 25 000 |
| Finished goods inventory, 1 January | 10 000 |
| Indirect material | 5 000 |
| Indirect labour | 7 500 |
| Other manufacturing overhead | 40 000 |
Required:
- Prepare the schedule of cost of goods manufactured for Nani’s fashion.
- Prepare the schedule of cost of goods sold for Nani’s Fashions and explain the information provided by the schedule of cost of goods sold.
- Prepare an income statement for the current year.
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