Before August the company had made good profits every month. The president of the company has some receptivity about the accuracy of the financial statements. As a friend of the president, he asks you to review the necessary corrections. After examining other manufacturing cost data you have information included from inventory balances.

Angler Company is a manufacturer of toys. Its controller, Joyce Rotzen, resigned in August.An inexperienced assistant accountant has prepared the following income statement for the month of AL ANGLER COMPANY Income Statement For the Month Ended August Sales (net) $ 675,000 Less: Operating expenses Raw materials purchases $ 200,000 Direct labor cost 160,000 Advertising expense 75,000 Selling and administrative salaries 70,000 Rent on factory facilities 60,000 Depreciation on sales equipment 50,000 Depreciation on factory equipment 35,000 Indirect labor cost 20,000 Utilities factory Insurance factory 5.000 685.000 Net loss $_(10.000) 10,000 Traduccin - Antes de agosto la compaa haba tenido Traduccin - Antes de agosto la compaa haba tenido buenas ganancias cada mes. El presidente de la compaa tiene cierta receptividad ace necesarias. Despus de examinar otros datos de costo de manufactura tienes informacin incluida de los balances de inventario. 1. Inventory balances at the beginning and end of August were: August 1 $ 19,500 Raw materials Work in process Finished goods August 31 $ 30,000 21,000 64,000 25,000 40,000 Instrucciones: a. Utilice el libro de referencia o recomendado para preparar ambos reportes. b. Prepare un cost of goods manufactured schedule for August 2005. TOTAL 24 puntos c. Prepare un correct Income Statement Total 30 puntos