1. Prepare a schedule for the cost of goods manufactured for

20172017.

2. Revenues for 2017 were $285 million. Prepare the income statement for 2017.

Rouse Company	Beginning of 2017	End of 2017
Direct materials inventory	22,000	27,000
Work-in-process inventory	29,000	25,000
Finished-goods inventory	10,000	28,000
Purchases of direct materials		73,000
Direct manufacturing labor		24,000
Indirect manufacturing labor		11,000
Plant insurance		7,000
Depreciationplant, building, and equipment		19,000
Repairs and maintenanceplant		3,000
Marketing, distribution, and customer-service costs		94,000
General and administrative costs		26,000

Requirement 1. Prepare a schedule for the cost of goods manufactured for

20172017.

Begin by preparing the schedule of cost of goods manufactured (in thousands). Start with the direct materials and labor costs, then indirect manufacturing costs, and complete the schedule by calculating cost of goods manufactured.

Rouse Company
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 2017 (in thousands)
Direct materials:
Direct materials used
Direct manufacturing labor

Indirect manufacturing costs:
Total indirect manufacturing costs

Manufacturing costs incurred during 2017
Total manufacturing costs to account for
Cost of goods manufactured

Requirement 2. Revenues for

20172017

were

$ 285$285

million. Prepare the income statement for

20172017.

(Use parentheses or a minus sign for operating losses.)

Rouse Company
Income Statement
For the Year Ended December 31, 2017 (in thousands)
	Cost of goods sold:
			Cost of goods sold
	Operating costs:
			Total operating costs
	Operating income/(loss)