The following information is available for Aikman Company.

Instructions

(a) Compute cost of goods manufactured.

(b) Prepare an income statement through gross profit.

(c) Show the presentation of the ending inventories on the December 31, 2017, balance sheet.

(d) How would the income statement and balance sheet of a merchandising company be different from Aikman’s financial statements?

Transcribed Image Text:

January 1, 2017 2017 December 31, 2017 Raw materials inventory Work in process inventory Finished goods inventory Materials purchased Direct labor $21,000 $30,000 13,500 27,000 17,200 21,000 $150,000 220,000 Manufacturing overhead Sales revenue 180,000 910,000