Yolo Windows, a manufacturer of windows for commercial buildings, reports the following account information for last year (all costs are in thousands of dollars). Information on January 1 (Beginning): Direct materials inventory$86 Work-in-process inventory 115 Finished goods inventory 1,630 Information for the year: Administrative costs$3,660 Direct labor 13,000 Direct materials purchases 8,290 Factory and machine depreciation 11,530 Factory supervision 773 Factory utilities 946 Indirect factory labor 2,880 Indirect materials and supplies 687 Marketing costs 1,540 Property taxes on factory 291 Sales revenue 45,600 Information on December 31 (Ending): Direct materials inventory$95 Work-in-process inventory 144 Finished goods inventory 1,500 The document is a financial statement for YOLO WINDOWS, specifically a "Statement of Cost of Goods Sold" for the year ended December 31, expressed in thousands of dollars ($000).**Structure of the Statement:**1. **Direct Materials Used:** - This section typically includes the cost of raw materials that are directly traceable to the production of a product.2. **Manufacturing Costs:** - Divided into two sub-categories: Direct Materials and Manufacturing Overhead. **Direct Materials:** - Lists various costs related to the direct materials. - A subtotal is indicated, summing up the direct material costs. **Manufacturing Overhead:** - This section includes various indirect costs associated with manufacturing that cannot be directly traced to specific units of product, such as utilities, rent, and depreciation incurred for production facilities. - A subtotal for total manufacturing overhead costs is provided and shown as zero in the template.3. **Total Manufacturing Costs:** - This is the sum of direct materials and manufacturing overhead, indicating the total cost associated with manufacturing during the period.4. **Total Cost of Work in Process During the Year:** - Reflects the cumulative costs of unfinished goods that are still in production at the end of the accounting period.5. **Costs of Goods Manufactured During the Year:** - Represents the total production costs of goods completed during the year. - Includes a breakdown and total.6. **Cost of Goods Sold:** - Represents the cost of inventory that was sold to customers during the year.This financial statement template does not include actual figures; it is structured to show where figures would be filled in for a complete analysis of the cost of goods sold by YOLO WINDOWS. ### YOLO WINDOWS#### Income Statement##### For the Year Ended December 31##### ($000)The table is structured to display financial data but currently lacks specific details. Key areas are outlined with arrows pointing to blank cells, indicating areas where monetary values will be filled.- **Main Sections**: Each major category (e.g., revenue, costs) presumably has a designated row but is unspecified.- **Total Marketing and Administrative Costs**: The only specified category with a value, noted as 0.This format suggests a focus on summarizing financial outcomes, ready to accommodate detailed entries for analysis.

An income statement shows the net profit earned or net loss incurred by the company. When the sales…

Answered: Yolo Windows, a manufacturer of windows…

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 2E: The following information is available for the first year of operations of Creston Inc., a...


Information on January 1 (Beginning):
Direct materials inventory	$	86
Work-in-process inventory		115
Finished goods inventory		1,630
Information for the year:
Administrative costs	$	3,660
Direct labor		13,000
Direct materials purchases		8,290
Factory and machine depreciation		11,530
Factory supervision		773
Factory utilities		946
Indirect factory labor		2,880
Indirect materials and supplies		687
Marketing costs		1,540
Property taxes on factory		291
Sales revenue		45,600
Information on December 31 (Ending):
Direct materials inventory	$	95
Work-in-process inventory		144
Finished goods inventory		1,500