1 Building Blocks of Managerial Accounting 2 Prepare Income Statement 3 Review the following amounts for West Nautical Company. Assume that the Raw Materials Inventory contains only direct materials. The Calculation of Direct Materials Used, Schedule of Cost of Goods Manufactured, and Calculation of Cost of Goods Sold can be 4 found under the "COSTOFGOODSSOLD" tab. 5 6 7 es 8 Raw materials inventory Work in process inventory Finished goods inventory Purchases of direct materials Direct labor Indirect labor Beginning of Year End of Year $ 23,000 $ 25,000 Insurance on plant $ 35,000 $ 31,000 Depreciation-plant building and equipment $ 20,000 $ 22,000 Repairs and maintenance-plant $ 74,000 Marketing expenses $ 86,000 General and administrative expenses $ 42,000 End of Year 11,500 $ 13,400 $ 3,700 $ 77,000 $ 28,500 9 10 11 12 13 14 Assume that the company has the following sales during the year: Price per 15 Units sold 34,000 $ unit 12 16 Step Instructions Points Possible 21 Prepare the income statement for West Nautical Company in for the most recent year. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) a. Check your spelling carefully and do not abbreviate. b. Follow the format in the exhibit that shows the Manufacturer's Income Statement. C. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted. Total Points 21 B 1 **DATA SHEET A DO NOT ENTER ANSWERS HERE** 2 3 Calculation of Direct Materials Used 4 Beginning Raw Materials Inventory $ 5 Plus: Purchases of direct materials 6 Materials available for use 7 Less: Ending Raw Materials Inventory 8 Direct materials used $ is 23,000 74,000 97,000 25,000 72,000 9 10 Schedule of Cost of Goods Manufactured 11 Beginning Work in Process Inventory $ 35,000 12 Plus Manufacturing costs incurred: 13 Direct materials used 72,000 14 Direct labor 86,000 15 Manufacturing overhead 70,600 16 Total manufacturing costs to account for $ 263,600 17 Less: Ending Work in Process Inventory 31,000 18 Cost of goods manufactured $ 232,600 19 20 Calculation of Cost of Goods Sold 21 Beginning Finished Goods Inventory $ 20,000 22 Plus: Cost of goods manufactured 232,600 23 Cost of goods available for sale $ 252,600 24 Less: Ending Finished Goods Inventory 22,000 25 Cost of goods sold 230,600 26 is 27 28 29 (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) West Nautical Company Income Statement For Current Year Operating income