Tebow Manufacturing Company makes camping equipment. Selected account balances (listed alphabetically) for this firm on December 31, 20X1, the end of its fiscal year, are given below. Data about the beginning and ending inventories is also shown.

INSTRUCTIONS

1. Prepare a statement of cost of goods manufactured for 20X1.

2. Prepare an income statement for 20X1.

Analyze: What percentage of cost of goods manufactured did the company spend on raw materials used? On direct labor costs? On overhead costs?

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Accounts Depreciation-Factory Assets Depreciation Expense-Office Assets Direct Labor Freight In Income Tax Expense Indirect Labor Indirect Materials and Supplies Insurance Factory Materials Purchases Office Salaries Expense Officers' Salarles Expense Other Administrative Expenses Other Selling Expenses Payroll Taxes Expense Administration Payroll Taxes Expense-Factory Payroll Taxes Expense-Sales Salaries Property Taxes-Office Property Taxes-Factory Purchases Returns and Allowances Repairs and Maintenance-Factory Repairs and Maintenance-Office Sales Sales Returns and Allowances Sales Salarles Expense Balances $ 5,000 3,000 210,000 5,000 80,220 20,000 7,000 12,000 350,000 50,000 180,000 1,800 15,000 20,000 20,000 9,000 2,000 8,000 4,000 3,200 1,000 1,400,000 8,000 100,000