chapter 19

Problem 1)

The following account balances and other information were taken from the accounting records of Wabasso Co. for the year ended December 31, 2030.

Required:

Use the information below to prepare:

a) A schedule of factory overhead costs.

b) A schedule of cost of goods manufactured (show only the total overhead cost).

c) An income statement.

Advertising Expense $90,000 Amortization Expense

- Patents $20,000 Bad Debts Expense $32,000 Depreciation Expense -

Office Equipment $40,000 Depreciation Expense -

Factory Building $136,000 Depreciation Expense -

Factory Equipment $82,000

Direct Labour $260,000

Factory Insurance Expense $64,000 Factory Supervision Expense $78,000

Factory Supplies Expense $22,000

Factory Utilities $120,000

Finished Goods Inventory, December 31, 2029 $18,000

Finished Goods Inventory, December 31, 2030 $16,500

Work In Process Inventory, December 31, 2029 $9,000

Work In process Inventory, December 31, 2030 $10,500

Income Taxes Expense $53,400 Indirect Labour $26,000

Interest Expense $28,000 Miscellaneous Expenses -

Nonfactory $55,000 Property Taxes Expense on Factory $12,000

Raw Materials Inventory, December 31, 2029 $60,000

Raw Materials Inventory, December 31, 2030 $79,000

Raw Materials Purchases $315,000 Repairs Expense -

Factory Equipment $34,000 Salaries Expense $150,000 Sales $2,460,000