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Income Statement Cost of Goods Manufactured Spencer Company produced 200000 cases of sports drinks during the past calendar year Each case of 1-liter bottles sells for $36 Spencer had

Income Statement, Cost of Goods Manufactured Spencer Company produced 200,000 cases of sports drinks during the past calendar year. Each case of 1-liter bottles sells for $36. Spencer had 2,500 cases of sports drinks in ?nished goods inventory at the beginning of the year. At the end of the year, there were 11,500 cases of sports drinks in ?nished goods inventory. Spencer ’ s accounting records provide the following information: Purchases of direct materials $2,350,000Direct materials inventory, January 1 290,000Direct materials inventory, December 31 112,000Direct labor 1,100,000Indirect labor 334,000Depreciation, factory building 525,000Depreciation, factory equipment 416,000Property taxes on factory 65,000Utilities, factory 150,000Insurance on factory 200,000Salary, sales supervisor 85,000Commissions, salespersons 216,000Advertising 500,000General administration 390,000Work-in-process inventory, January 1 450,000Work-in-process inventory, December 31 750,000Finished goods inventory, January 1 107,500Finished goods inventory, December 31 488,750 Required: 1. Prepare a cost of goods manufactured statement.2. Compute the cost of producing one case of sports drink last year. (Round your answer to the nearest cent.)3. Prepare an income statement on an absorption-costing basis. Include a column showing the percent of each line item of sales. (Round your percentage answers to two signi? cant digits, e.g., 45.67%.)

Apr 03 2020 View more View Less

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