The trial balance of the McBain Products Company, Inc., as of December 31 of this year, is shown here.

You are given the following information for the adjustments;
a.-f. Year-end inventories: raw materials, $43,000; work-in-process, $63,400;
finished goods, $69,250.
g. Allowance for Doubtful Accounts to be increased by $800 (debit General Expenses [control]).
h. Cost of the factory supplies inventory, $1,000.
i. Estimated depreciation of factory machinery, $8,750.
j. A study of the company’s insurance policies shows that $1,200 of factory insurance expired during the year.
k. Accrued direct labor, $300; accrued indirect labor, $100; accrued sales commissions, $100 (credit Wages and Commissions Payable).
l. Additional income tax, $1,208.

Instructions Check Figure Cost of goods manufactured, 1. Prepare a work sheet. $406 850 2. Prepare a statement of cost of goods manufactured.
3. Prepare an income statement.

Transcribed Image Text:

Cash McBain Products Company, Inc. Trial Balance December 31, 19- ACCOUNT NAME Accounts Receivable Allowance for Doubtful Accounts Raw Materials Inventory Work-in-Process Inventory Finished Goods Inventory Prepaid Factory Insurance Factory Supplies Machinery Accumulated Depreciation, Machinery Accounts Payable Common Stock Paid-in Capital in Excess of Stated Value Retained Earnings Sales Raw Materials Purchases Direct Labor Indirect Labor Heat, Light, and Power Machinery Repairs Selling Expenses (control) General Expenses (control) Income Tax Expense DEBIT CREDIT 420000 3580000 145000 4500000 7130000 6820000 180000 300000 8400000 42000 00 7000000 209 70000 7990000 1600000 900000 13995000 6005000 2930000 100 000 00 2000000 7000000 638750 00 360000 90150000 90150 000