Reese Manufacturing Company manufactures and sells a limited line of products made to customer order. The company
Question:
Reese Manufacturing Company manufactures and sells a limited line of products made to customer order. The company uses a perpetual inventory system and keeps its accounts on a calendar year basis. A 10-column work sheet is presented on page 1086. Additional information needed to prepare the income statement and schedule of cost of goods manufactured is as follows:
Finished goods inventory, January 1 ……………….$ 85,454
Materials inventory, January 1 ……………….………11,633
Purchases for the year ……………….……………….96,437
Direct labor ……………….……………….………..107,740
Work in process inventory, January 1 ……………….22,600
Indirect materials charged to production ……………..3,200
REQUIRED
1. Prepare an income statement and schedule of cost of goods manufactured for the year ended December 31, 20--.
2. Prepare a retained earnings statement for the year ended December 31, 20--.
3. Prepare a balance sheet as of December 31, 20--.
4. Prepare the adjusting, closing, and reversing entries.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
1 2 3 4 Net sales Less cost of goods sold Finished goods inventory Ja...View the full answer
