Backyard Amenities BackyardAmenities is a manufacturer of...

Backyard Amenities

BackyardAmenities is a manufacturer of backyard and deck furniture. Its products are in high demand and it carries no inventory. Following is a list of selected account balances from its trial balance for the most recent year ended December

.

Requirement1, 2,3, and 4. To solve for the amountsrequired, prepare the income statement for Backyard Amenities

Salaries and wages (for administrative and sales staff)

. . . . . . . . . . . . . . . . . . . . . .

$

38,100

Stain (used in manufacturing furniture)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

14,500

Indirect labor costs (wages of maintenance workers in factory)

. . . . . . . . . . . . . . .

$

23,700

Other manufacturing overhead (includes factory insurance and property taxes)

. .

$

11,300

Rent and utilities (for administrative offices)

. . . . . . . . . . . . . . . . . . . . . . . . . . .

$

13,200

Utility costs (related to factory)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

12,100

Labor costs (wages of carpenters who build furniture)

. . . . . . . . . . . . . . . . . . . .

$

33,700

Accounts receivable

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

31,200

Marketing costs

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

15,200

Wood (used in manufacturing furniture)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

59,100

Sales revenues

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

267,000

Accounts payable

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

8,200

Backyard Amenities

Income Statement

For the Year Ended December 31

Sales revenue

Less:

Cost of goods sold

Indirect labor costs

Stain

Salaries and wages

Other manufacturing overhead

Rent and utilities

Labor costs

Less: