Question
Araj Company, a manufacturing firm, has supplied the following information from its accounting records for the last calendar year: Direct labor cost $371,500 Purchases of
Araj Company, a manufacturing firm, has supplied the following information from its accounting records for the last calendar year: Direct labor cost $371,500 Purchases of direct materials 160,400 Freight-in on materials 1,000 Factory supplies used 37,800 Factory utilities 46,000 Commissions paid 80,000 Factory supervision and indirect labor 190,000 Advertising 23,900 Materials handling 26,750 Work-in-process inventory, January 1 201,000 Work-in-process inventory, December 31 98,000 Direct materials inventory, January 1 47,000 Direct materials inventory, December 31 17,000 Finished goods inventory, January 1 8,000 Finished goods inventory, December 31 62,700 Required: 1. Prepare a cost of goods manufactured statement. 2. Prepare a cost of goods sold statement.
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