Question
Classifying Costs, Calculating Cost of Goods Manufactured, and Preparing an Income Statement. Madison Company has the following information available: Cost Amount Cost Amount Factory Utilities
- Classifying Costs, Calculating Cost of Goods Manufactured, and Preparing an Income Statement.
Madison Company has the following information available:
| Cost | Amount | Cost | Amount |
| Factory Utilities | 3,000 | Depreciation Factory Equipment | 4,000 |
| Factory Maintenance | 1,100 | Indirect Labor | 15,550 |
| Production Supervisors Salary | 48,990 | Direct Labor Wages | 50,000 |
| Sales Commissions | 14,000 | Direct Material Purchases | 120,000 |
| Presidents Salary | 98,000 | Depreciation-Office Equipment | 2,000 |
| Office Utilities | 1,500 | Factory Insurance | 3,800 |
| Accounts Receivable | 12,500 | Cash | 62,300 |
| Office Salaries | 15,650 | Factory Rent | 17,775 |
Other information includes:
| Inventory | Beginning | Ending |
| Raw Materials | 36,800 | 62,750 |
| Work In Process | 52,500 | 86,210 |
| Finished Goods | 70,250 | 89,680 |
Instructions:
- Prepare a Cost of Goods Manufactured Schedule
- Prepare an Income Statement (Net Sales = $420,000)
- Prepare a current assets section of the balance sheet
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