The following information is available for Aikman Company.

January 1, 2014 2014 December 31, 2014 Raw materials inventory $21,000 $30,000 Work in process inventory 13,500 17,200 Finished goods inventory 27,000 21,000 Materials purchased $150,000 Direct labor 220,000 Manufacturing overhead 180,000 Sales revenue 910,000 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, 2014, balance sheet.

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

AppendixLO1