The following data refer to Quest Ltd for the current year: Sales Revenues $575 000 Work in process inventory, 31 December 20 000 Work in process inventory, 1 January 25 000 Product promotion cost 30 000 Rental of office space for sales personnel 20 000 Cost of idle time: sales employees 20 000 Income tax expense 60 000 Purchase of raw materials 95 000 Raw materials inventory, 31 December 17 500 Raw material inventory. 1 January 25 000 Direct labour 105 000 Electricity: plant 25 000 Depreciation plant and equipment 35 000 Finished goods inventory, 31 December 30 000 Finished goods inventory, 1 January 15 000 Indirect material 5 000 Indirect labour 7 500 Production supervisor’s salary 40 000 Required: a) Prepare the schedule of cost of goods manufactured for Quest Ltd. b) Prepare the schedule of cost of goods sold for Quest Ltd. c) Prepare an income statement for Quest Ltd for the current year.
The following data refer to Quest Ltd for the current year:
Sales Revenues $575 000
Work in process inventory, 31
December
20 000
Work in process inventory, 1 January 25 000
Product promotion cost 30 000
Rental of office space for sales
personnel
20 000
Cost of idle time: sales employees 20 000
Income tax expense 60 000
Purchase of raw materials 95 000
Raw materials inventory, 31 December 17 500
Raw material inventory. 1 January 25 000
Direct labour 105 000
Electricity: plant 25 000
Finished goods inventory, 31
December
30 000
Finished goods inventory, 1 January 15 000
Indirect material 5 000
Indirect labour 7 500
Production supervisor’s salary 40 000
Required:
a) Prepare the schedule of cost of goods manufactured for Quest Ltd.
b) Prepare the schedule of cost of goods sold for Quest Ltd.
c) Prepare an income statement for Quest Ltd for the current year.
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