Building Blocks of Managerial Accounting Prepare Income Statement Review the following amounts for West Nautical Company. Assume that the Raw Materials inventory contains only direct materials. The Calculation of Direct Materials Used, Schedule of Cost of Goods Manufactured, and Calculation of Cost of Goods Sold can be found under the "COSTOFGOODSSOLD" tab Raw materials inventory Work in process inventory Finished goods inventory Purchases of direct materials Direct labor Indirect labor Beginning of Year End of Year $ 23,000 $ 25,000 Insurance on plant $ 35,000 $ 31,000 Depreciation-plant building and equipment $ 20,000 S 22,000 Repairs and maintenance-plant $ 74,000 Marketing expenses $ 86,000 General and administrative expenses $ 42,000 End of Year $ 11,500 $ 13,400 S 3,700 $ 77,000 $ 28,500 Assume that the company has the following sales during the year: Price per Units sold unit .6 34,000 $ 12 7 18 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be 19 marked wrong, 20 21 Requirement 22 Prepare the income statement for West Nautical company in for the most recent year 23 Check your spelling carefully and do not abbreviate. Follow the format in the exhibit that shows the Manufacturer's Income Statement 25 Enter all amounts as positive values. Do not use a minus sign of parentheses for any values to be subtracted a 24 b 26 **DATA SHEET --DO NOT ENTER ANSWERS HERE** $ Calculation of Direct Materials Used Beginning Raw Materials Inventory Plus: Purchases of direct materials Materials available for use Less: Ending Raw Materials Inventory Direct materials used $ $ 23,000 74,000 97,000 25,000 72,000 35,000 Schedule of Cost of Goods Manufactured Beginning Work in Process Inventory $ Plus Manufacturing costs incurred: Direct materials used Direct labor Manufacturing overhead Total manufacturing costs to account for $ Less: Ending Work in Process Inventory Cost of goods manufactured $ 72,000 86,000 70,600 263,600 31,000 232,600 Calculation of Cost of Goods Sold Beginning Finished Goods Inventory $ Plus: Cost of goods manufactured Cost of goods available for sale $ Less: Ending Finished Goods Inventory Cost of goods sold $ 20,000 232,600 252,600 22,000 230,600 INSTRUCTIONS COSTOFGOODSSOLD ENTERANSWER D B D E A (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) West Nautical Company Income Statement For Current Year 1 2 3 Operating income 5 5 7 B 0 2 3 4 5 16 7 8 9 0 1
