Comprehensive analysis of manufacturing financial data Surbonia, Ltd. manufactures heating units for electric hot water heaters. On the next page are a year-end trial balance and subsidiary ledger balances.

The January 1,1992 inventory balances were $97,500 for Raw Materials, $119,000 for Work in Process, and $96,000 for Finished Goods. During 1992 direct material costs were $256,000, and direct labor cost were $191,000. The company manufactured 25,500 units in 1992 and sold 24,000 units.

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SURBONIA LTD. Trial Balance December 31, 1992 Cash .... Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Building... Debits $ 146,000 Credits 145,000 115,000 144,000 154,000 1,450,000 Accumulated depreciation, building $ 510,000 Equipment ...... 210,000 Accumulated depreciation, equipment 50,000 Investments... 62,000 Accounts payable 165,000 Notes payable 280,000 Mortgage payable 535,000 Capital stock 390,000 Retained earnings. 430,000 Dividends on common stock. 25,000 Sales...... 1,440,000 Sales returns and allowances. 22,000 Cost of goods sold. 760,000 Advertising..... Sales commissions Depreciation, building Depreciation, equipment. Equipment, rent.... Administrative salaries Utilities.... Totals 74,000 $3,800,000 $3,800,000 25,500 84,000 70,000 45,000 12,500 256,000