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Orman Company produces neon-colored covers for tablets iPads For last year Orman reported the following Work-in-process inventory

Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported the following: Work-in-process inventory, January 1 ......... $ 13,250 Work-in-process inventory, December 31 ......... 28,250 Finished goods inventory, January 1 ............ 113,000 Finished goods inventory, December 31 ......... 85,000 Direct materials inventory, January 1 ........... 3,450 Direct materials inventory, December 31 ......... 2,700 Direct materials purchased ............... 183,750 Direct labor ..................... 138,000 Plant depreciation ................. . 19,500 Salary, production supervisor .............. 47,000 Indirect labor ................. 68,300 Utilities, factory .................. 15,700 Sales commissions .................. 42,000 Salary, sales supervisor .............. 75,000 Depreciation, factory equipment ........... 32,000 Administrative expenses ............ 168,000 Supplies (40% used in the factory, 60% used in the sales office) 18,000 Advertising expense ................ 43,600 Last year, Orman produced 89,000 units and sold 90,500 units at $10.50 per unit. Required: 1. Prepare a statement of cost of goods manufactured. 2. Prepare an absorption-costing income statement.

Apr 21 2020 View more View Less

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