Reconstruct Financial Statements
Hunter Company manufactures fishing equipment. The company’s administrative and manufacturing operations share the company’s one building. Eighty percent of the building is used for manufacturing and the remainder is used for administrative activities. Indirect labor is 8 percent of direct labor.
The cost accountant at Hunter has compiled the following information for the year ended
December 31:

Required
Prepare a cost of goods manufactured and sold statement and an income statement.

Transcribed Image Text:

Administrative salaries Attomey fees to settle zoning dispute Building depreciation (manufacturing portion only) Cost of goods manufactured Direct materials inventory, December 31 Direct materials purchased during the year Direct materials used Distribution costs Finished goods inventory, January 1 Finished goods inventory, December 31 Insurance (on plant machinery) Maintenance (on plant machinery) Marketing costs $ 179,900 28,700 226,800 3,477,250 297,500 1,260,000 1,337,350 5,600 280,000 315,000 66,500 42,350 129,500 111,650 130,200 5,687,500 Other plant costs Plant utilities Sales revenue Taxes on manufacturing property Total (direct and indirect) labor Work-in-process inventory, January 1 Work-in-process inventory, December 31 45,850 1,512,000 90,650 86,100