Alhambra Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1.

Inventory Classification	January 1, 20x1				December 31, 20x1
Raw material		$	60,000			$	70,000
Work in process			120,000				115,000
Finished goods			140,000				165,000

During 20x1, the company purchased $260,000 of raw material and spent $400,000 for direct labor. Manufacturing overhead costs were as follows:

Indirect material	$	10,000
Indirect labor		23,000
Depreciation on plant and equipment		100,000
Utilities		23,000
Other		30,000

Sales revenue was $1,111,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm's tax rate is 40 percent.

1.

value: 3.30 points

Required information

Required:

1.	Prepare a schedule of cost of goods manufactured.

References

eBook & Resources

ExerciseLearning Objective: 02-01 Explain what is meant by the word cost.Learning Objective: 02-06 Prepare a schedule of cost of goods manufactured, a schedule of cost of goods sold, and an income statement for a manufacturer.

Difficulty: MediumLearning Objective: 02-03 Describe the role of costs in published financial statements.

Check my work

2.

value: 3.30 points

Required information

2.	Prepare a schedule of cost of goods sold.

References

eBook & Resources

ExerciseLearning Objective: 02-01 Explain what is meant by the word cost.Learning Objective: 02-06 Prepare a schedule of cost of goods manufactured, a schedule of cost of goods sold, and an income statement for a manufacturer.

Difficulty: MediumLearning Objective: 02-03 Describe the role of costs in published financial statements.

Check my work

3.

value: 3.40 points

Required information

3.	Prepare an income statement.