Ghajar Company, a manufacturing firm, has supplied the following information from its ac¬

counting records for last year:

Required:
1. Prepare a cost of goods manufactured statement.
2. Prepare a cost of goods sold statement.

Transcribed Image Text:

Factory insurance Direct labor cost Purchases of raw materials Supplies used Commissions paid $125,600 70,000 2,050 3,000 20,000 Factory supervision and indirect labor 62,700 Advertising 17,992 Material handling- 20,300 Work in process inventory, January 1 125,000 Work in process inventory, December 31 145,000 Materials inventory, January 1 34,000 Materials inventory, December 31 21,000 Finished goods inventory, January 1 56,000 Finished goods inventory, December 31 37,000