The following calendar year-end information is taken from the December 31, 2013, adjusted trial balance and other records of DeLcon Company.

Required 1. Prepare the company’s 2013 manufacturing statement.
2. Prepare the company’s 2013 income statement that reports separate categories for {a) selling expenses and

(b) general and administrative expenses.

Analysis Component 3. Compute the (o) inventory turnover, defined as cost of goods sold divided by average inventory, and {!?) days’ sales in inventory, defined as 365 times ending inventory divided by cost of goods sold, for both its raw materials inventory and its finished goods inventory. (To compute turnover and days’ sales in inventory for raw materials, use raw materials used rather than cost of goods sold.) Discuss some possible reasons for differences between these ratios for the two types of inventories. Round answers to one decimal place.

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Advertising expense $ 28,750 Direct labor Depreciation expense-Office equipment 7,250 Income taxes expense $ 675,480 233,725 Depreciation expense-Selling equipment 8,600 Indirect labor 56,875 Depreciation expense-Factory equipment 33,550 Miscellaneous production costs 8,425 Factory supervision... 102,600 Office salaries expense.. 63,000 Factory supplies used 7,350 Raw materials purchases 925,000 Factory utilities.. 33,000 Rent expense-Office space 22,000 Inventories Rent expense-Selling space 26,100 Raw materials, December 31, 2012 .... 166,850 Rent expense-Factory building 76,800 Raw materials, December 31, 2013... Goods in process, December 31, 2012. Goods in process, December 31, 2013.. Finished goods, December 31, 2012.... Finished goods, December 31, 2013... 182,000 Maintenance expense-Factory equipment. 35,400 15,700 Sales 4,525,000 19,380 Sales discounts 62,500 167,350 Sales salaries expense 392,560 136,490