Income Statement: A part of financial statements that lists the income and expenses of business for an accounting year is called income statement. It is prepared at the end of accounting period to know the profitability of the business. Cost of Goods Manufactured: Cost of goods manufactured includes the direct material used, direct labor and manufacturing overheads . It is the sum total of all the expenses incurred to manufacture goods. To prepare: Income statement for 2014 and schedule for the cost of goods manufactured for 2014.

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Chapter 2, Problem 2.36P

To determine

Income Statement:

A part of financial statements that lists the income and expenses of business for an accounting year is called income statement. It is prepared at the end of accounting period to know the profitability of the business.

Cost of Goods Manufactured:

Cost of goods manufactured includes the direct material used, direct labor and manufacturing overheads. It is the sum total of all the expenses incurred to manufacture goods.

To prepare: Income statement for 2014 and schedule for the cost of goods manufactured for 2014.

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