The following selected account balances are provided for Delray Mfg. Sales$1,494,000Raw materials inventory, beginning 35,000Work in process inventory, beginning 51,300Finished goods inventory, beginning 67,000Raw materials purchases 180,200Direct labor 236,000Factory supplies used (indirect materials) 15,500Indirect labor 52,000Repairs—Factory equipment 5,250Rent cost of factory building 59,000Advertising expense 99,000General and administrative expenses 131,000Raw materials inventory, ending 47,000Work in process inventory, ending 41,300Finished goods inventory, ending 69,700 Prepare an income statement for Delray Mfg. (a manufacturer).DELRAY MFG.Income StatementFor Year Ended December 31, Year 1SalesCost of goods soldFinished goods inventory, beginningCost of goods manufacturedCost of goods available for saleLess: Finished goods inventory, endingCost of goods soldGross profitOperating expensesAdvertising expenseGeneral and administrative expensesTotal operating expensesOperating income$

The operating income is calculated as excess of sales revenue over total costs.

Answered: The following selected account balances…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following selected account balances are provided for Delray Mfg.


Sales	$	1,494,000
Raw materials inventory, beginning		35,000
Work in process inventory, beginning		51,300
Finished goods inventory, beginning		67,000
Raw materials purchases		180,200
Direct labor		236,000
Factory supplies used (indirect materials)		15,500
Indirect labor		52,000
Repairs—Factory equipment		5,250
Rent cost of factory building		59,000
Advertising expense		99,000
General and administrative expenses		131,000
Raw materials inventory, ending		47,000
Work in process inventory, ending		41,300
Finished goods inventory, ending		69,700

Prepare an income statement for Delray Mfg. (a manufacturer).
DELRAY MFG.
Income Statement
For Year Ended December 31, Year 1
Sales
Cost of goods sold
Finished goods inventory, beginning
Cost of goods manufactured
Cost of goods available for sale
Less: Finished goods inventory, ending
Cost of goods sold
Gross profit
Operating expenses
Advertising expense
General and administrative expenses
Total operating expenses
Operating income
$

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