The Stiff Shirt Company has just completed its third year of operation. Sales for the year were $1,300,000, and inventories were as follows: DECEMBER 31 JANUARY 1 Raw materials inventory Work-in-process inventory Finished goods inventory -0- -0- $100,000 64,000 $95,000 76,000 Costs for the period were as follows: Direct materials.... . $365,000 Direct labor.... Factory overhead ..... 405,000 445,500 Selling expenses were $26,000. General and administrative expenses were $82,000. Required: a Prepare the following statements: 1 Cost of goods manufactured 2 Cost of goods sold b Compute the net income or loss.

The Stiff Shirt Company has just completed its third year of operation. Sales for the year were $1,300,000, and inventories were as follows: DECEMBER 31 JANUARY 1 Raw materials inventory Work-in-process inventory Finished goods inventory -0- -0- $100,000 64,000 $95,000 76,000 Costs for the period were as follows: Direct materials.... . $365,000 Direct labor.... Factory overhead ..... 405,000 445,500 Selling expenses were $26,000. General and administrative expenses were $82,000. Required: a Prepare the following statements: 1 Cost of goods manufactured 2 Cost of goods sold b Compute the net income or loss.

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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Tory Inc. provided the following data at current year-end: Finished goods in storeroom, at cost including overhead of $400,000 - 2,000,000 Finished goods in transit, including freight charge of $20,000, FOB shipping point - 250,000 Finished goods held by salesmen, at selling price, cost, $100,000 - 140,000 Goods in process, at cost of materials and direct labor - 720,000 Materials - 1,000,000 Materials in transit, FOB destination - 50,000 Defective materials returned to suppliers for replacement - 100,000 Shipping supplies - 20,000 Gasoline and oil for testing finished goods - 110,000 Machine lubricants - 60,000 Instruction: Compute for the cost of inventory at current year-end.
please answer letter b and explain thoroughly
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