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Preparation of a Schedule of Cost of Goods Manufactured and Cost of Goods Sold The following cost and inventory data for the year just completed are taken from the accounting records of Eccles

Preparation of a Schedule of Cost of Goods Manufactured and Cost of Goods Sold

The following cost and inventory data for the year just completed are taken from the accounting records of Eccles Company:

Costs incurred:

Advertising expense ...........................$100,000

Direct labour cost ..................................$80,000

Purchases of raw materials ................$137,000

Rent, factory building ............................$80,000

Indirect labour .......................................$56,300

Sales commissions................................$35,000

Utilities, factory ........................................$9,000

Maintenance, factory equipment ...........$24,000

Supplies, factory ........................................ $700

Depreciation, office equipment.................$8,000

Depreciation, factory equipment ............$40,000

Beginning End

of Year of Year

Inventories:

Raw materials ...................... $10,000 $8,000

Work in process ..................... $20,000 $5,000

Finished goods ..................... $25,000 $70,000

Required:

1. Prepare a schedule of cost of goods manufactured.

2. Prepare the cost of goods sold section of Eccles Company's income statement for the year.

Jul 26 2021 View more View Less

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