Roma Manufacturing Company makes water heaters. Selected account balances on December 31, 2016, the end of its fiscal year, are given below. Data about the beginning and ending inventories are also given.

INSTRUCTIONS

1. Prepare a statement of cost of goods manufactured for 2016.

2. Prepare an income statement for 2016.

Analyze:

For every dollar earned in net sales, what portion was spent on manufacturing costs?

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Balances Balances Accounts Accounts (cont.) Sales Sales Returns and Allowances Materials Purchases Direct Labor Indirect Labor Рayroll Taxes — Factoгy Utilities – Factory Repairs and Maintenance– Factory Indirect Materials and Supplies Depreciation– Factory Building Depreciation- Factory Equipment Insurance – Factory Property Taxes – Factory Sales Salaries Expense Payroll Taxes Expense – Selling Delivery Expense Advertising Expense Miscellaneous Selling Expenses Officers' Salaries Expense Office Salaries Expense Payroll Taxes Expense – Administrative Other Administrative Expenses Income Tax Expense 9,000 S1,065,000 6,500 202,500 205,000 130,000 13,000 9,000 37,000 24,000 25,000 6,000 7,000 6,000 5,500 10,000 26,000 160,000 46,000 20,500 4,000 23,250 10,000