Alhambra Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning

Question:

Alhambra Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1.

During 20x1, the company purchased $ 240,000 of raw material and spent $ 420,000 for direct labor. Manufacturing overhead costs were as follows:
Indirect material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,000
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000
Depreciation on plant and equipment . . . . . . . . . . . . . . . . . 110,000
Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,000
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000

Sales revenue was $ 1,210,000 for the year. Selling and administrative expenses for the year amounted to $ 105,000. The firm€™s tax rate is 35 percent.

Required:
1. Prepare a schedule of cost of goods manufactured.
2. Prepare a schedule of cost of goods sold.
3. Prepare an income statement.
4. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how both cost schedules and the income statement will change if the following data change: direct labor is $ 410,000 and utilities cost $24,000.