Question
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
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:
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