Bandway Company manufactures brass musical instruments for use by high school students. The company uses a normal costing system, in which manufacturing overhead is applied on the basis of direct-labor hours. The companys budget for the current year included the following predictions.

Budgeted total manufacturing overhead	$	446,600
Budgeted total direct-labor hours (based on practical capacity)		20,300

During October, the firm worked on the following two production jobs:

Job number T79, consisting of 76 trombones

Job number C41, consisting of 110 cornets

The events of October are described as follows:

a.	One thousand square feet of rolled brass sheet metal was purchased on account for $4,000.
b.	Three hundred pounds of brass tubing was purchased on account for $3,000.
c.	The following requisitions were submitted on October 5:
	Requisition number 112: 250 square feet of brass sheet metal at $5 per square foot (for Job number T79)
	Requisition number 113: 1,000 pounds of brass tubing, at $10 per pound (for Job number C41)
	Requisition number 114: 10 gallons of valve lubricant, at $10 per gallon
	All brass used in production is treated as direct material. Valve lubricant is an indirect material.
d.	An analysis of labor time cards revealed the following labor usage for October.
	Direct labor: Job number T79, 800 hours at $20 per hour
	Direct labor: Job number C41, 900 hours at $20 per hour
	Indirect labor: General factory cleanup, $4,000
	Indirect labor: Factory supervisory salaries, $9,000
e.	Depreciation of the factory building and equipment during October amounted to $12,000.
f.	Rent paid in cash for warehouse space used during October was $1,100.
g.	Utility costs incurred during October amounted to $2,100. The invoices for these costs were received, but the bills were not paid in October.
h.	October property taxes on the factory were paid in cash, $2,200.
i.	The insurance cost covering factory operations for the month of October was $3,100. The insurance policy had been prepaid.
j.	The costs of salaries and fringe benefits for sales and administrative personnel paid in cash during October amounted to $6,000.
k.	Depreciation on administrative office equipment and space amounted to $3,000.
l.	Other selling and administrative expenses paid in cash during October amounted to $1,000.
m.	Job number T79 was completed on October 20.
n.	Half of the trombones in Job number T79 were sold on account during October for $700 each.

The October 1 balances in selected accounts are as follows:

Cash	$ 9,000
Accounts Receivable	21,000
Prepaid Insurance	5,000
Raw-Material Inventory	149,000
Manufacturing Supplies Inventory	400
Work-in-Process Inventory	91,000
Finished-Goods Inventory	220,000
Accumulated Depreciation: Buildings and Equipment	101,000
Accounts Payable	11,000
Wages Payable	8,000

Problem 3-58 Part 6

6.

Prepare a schedule of cost of goods sold for October.

add finished-goods inventory, october 1?

add cost of goods manuafctured?

cost of goods available for sale?

less finished goods inventory october 31?

cost of good sold?

adjusted cost of goods sold?

7.	Prepare an income statement for October.
	salse reveune? less cost of goods sold? gross margin? selling and administrative expenses? net income(loss)?