Chapter 3 Exercise 5

5. Schedule of cost of goods manufactured, income statement

The following information was taken from the ledger of Jefferson Industries, Inc.:

Direct labor $85,000 Administrative expenses $59,000

Selling expenses 34,000 Work in. process

Sales 300,000 Jan. 1 29,000

Finished goods Dec. 31 21,000

Jan. 1 115,000 Direct material purchases 88,000

Dec. 31 131,000 Depreciation: factory 18,000

Raw (direct) materials on hand Indirect materials used 10,000

Jan. 1 31,000 Indirect labor 24,000

Dec. 31 40,000 Factory taxes 8,000

Factory utilities 11,000

Prepare the following:

a. A schedule of cost of goods manufactured for the year ended December 31.

b. An income statement for the year ended December 31.