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 End of of Year Year $ 23,000 $ 25,000 $ 35,000 $ 31,000 $ 20,000 $ 22,000 $ 74,000 $ 86,000 $ 42,000 End of Year Insurance on plant $ 11,500 Depreciation-plant building and equipment $ 13,400 Repairs and maintenance-plant $ 3,700 Marketing expenses $ 77,000 General and administrative expenses $ 28,500 Assume that the company has the following sales during the year: Price per Units sold unit 34,000 $ 12 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 marked wrong. Requirement Prepare the income statement for West Nautical Company in for the most recent year. a. Check your spelling carefully and do not abbreviate. b. Follow the format in the exhibit that shows the Manufacturer's Income Statement. C. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted. **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 Schedule of Cost of Goods Manufactured Beginning Work in Process Inventory $ 35,000 Plus Manufacturing costs incurred: Direct materials used 72,000 Direct labor 86,000 Manufacturing overhead 70,600 Total manufacturing costs to account for $ 263,600 Less: Ending Work in Process Inventory 31,000 Cost of goods manufactured $ 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 (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 Sales Revenue Cost of goods sold Gross Profit Operating expenses Marketing expenses General and administrative expenses $408,000 230,600 $177,400 $77,000 28,500 105500 $71,900 Operating income 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 End of of Year Year $ 23,000 $ 25,000 $ 35,000 $ 31,000 $ 20,000 $ 22,000 $ 74,000 $ 86,000 $ 42,000 End of Year Insurance on plant $ 11,500 Depreciation-plant building and equipment $ 13,400 Repairs and maintenance-plant $ 3,700 Marketing expenses $ 77,000 General and administrative expenses $ 28,500 Assume that the company has the following sales during the year: Price per Units sold unit 34,000 $ 12 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 marked wrong. Requirement Prepare the income statement for West Nautical Company in for the most recent year. a. Check your spelling carefully and do not abbreviate. b. Follow the format in the exhibit that shows the Manufacturer's Income Statement. C. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted. **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 Schedule of Cost of Goods Manufactured Beginning Work in Process Inventory $ 35,000 Plus Manufacturing costs incurred: Direct materials used 72,000 Direct labor 86,000 Manufacturing overhead 70,600 Total manufacturing costs to account for $ 263,600 Less: Ending Work in Process Inventory 31,000 Cost of goods manufactured $ 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 (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 Sales Revenue Cost of goods sold Gross Profit Operating expenses Marketing expenses General and administrative expenses $408,000 230,600 $177,400 $77,000 28,500 105500 $71,900 Operating income