Below is financial information for Uncle Sam's Fashion Inc. (The Compamy) for the year ended by its inexperienced accountant Uncle Sam's Fashion Inc at December 31, 2018 Sales reve Wages payable. $300,600 Dividend revenue Allowance for Uncollectible accounts . Deferred revenue...n. 500 700 1,000 303,100 Less: Cost of goods manufactured.. 238.000 Gross profit Operating expenses: 65,100 Selling 5,000 25,000 5,000 Restructuring costs... Administrative Available-for-sale investment Prepaid advertising. 600 Dividend paid Interest expense... Total operating expenses Net loss Uncle Sam's Fashion Inc Schedule of Cost of Goods Manufactured at December 31, 2018 $96,000 Direct materials purchased... Direct manufacturing labor. Manufacturing overhead: Indirect manufacturing labor cost Research and development expense $18,400 3.500 4,000 600 12,000 Indirect materials Loss on sale of investments Factory rent .. 4,800 49,000 4,200 ..2,500 (6,000) Factory insurance Factory utilities Prepaid advertising expense.... Factory wages payable manufactured. The accountant did not take the following items into consideration when preparing the statements above. a. Factory equipment was purchased October 1, 2018 and has a useful life of 10 years with $3,200 salvage (residual) value. The company uses the double-declining balance method of depreciation b. Inventory balances for 2018 are: 29,500 11,100 Finished goods23,200 Work-in-process 7,250 The company's tax rate is 21%. Below is financial information for Uncle Sam's Fashion Inc. (The Compamy) for the year ended by its inexperienced accountant Uncle Sam's Fashion Inc at December 31, 2018 Sales reve Wages payable. $300,600 Dividend revenue Allowance for Uncollectible accounts . Deferred revenue...n. 500 700 1,000 303,100 Less: Cost of goods manufactured.. 238.000 Gross profit Operating expenses: 65,100 Selling 5,000 25,000 5,000 Restructuring costs... Administrative Available-for-sale investment Prepaid advertising. 600 Dividend paid Interest expense... Total operating expenses Net loss Uncle Sam's Fashion Inc Schedule of Cost of Goods Manufactured at December 31, 2018 $96,000 Direct materials purchased... Direct manufacturing labor. Manufacturing overhead: Indirect manufacturing labor cost Research and development expense $18,400 3.500 4,000 600 12,000 Indirect materials Loss on sale of investments Factory rent .. 4,800 49,000 4,200 ..2,500 (6,000) Factory insurance Factory utilities Prepaid advertising expense.... Factory wages payable manufactured. The accountant did not take the following items into consideration when preparing the statements above. a. Factory equipment was purchased October 1, 2018 and has a useful life of 10 years with $3,200 salvage (residual) value. The company uses the double-declining balance method of depreciation b. Inventory balances for 2018 are: 29,500 11,100 Finished goods23,200 Work-in-process 7,250 The company's tax rate is 21%
