Consider the following account balances (in thousands) for the

ShipmanShipman

Corporation:

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(Click the icon to view the account balances.)

Requirements

1. Prepare a schedule for the cost of goods manufactured for

20172017.

2. Revenues (in thousands) for

20172017

were

$ 1 comma 600 comma 000$1,600,000.

Prepare the income statement for

20172017.

Requirement 1. Prepare a schedule for the cost of goods manufactured for

20172017.

Start with the direct materials and labor costs, then manufacturing overhead costs, and complete the schedule by calculating cost of goods manufactured.

Shipman Corporation
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 2017 (in thousands)
Direct materials:
	Direct materials used
Direct manufacturing labor

Manufacturing overhead costs:
	Total manufacturing overhead costs

Manufacturing costs incurred during 2017
Total manufacturing costs to account for
Cost of goods manufactured

Requirement 2. Revenues (in thousands) for

20172017

were

$ 1 comma 600 comma 000$1,600,000.

Prepare the income statement for

20172017.

(Use a minus sign or parentheses for an operating loss.)

Shipman Corporation
Income Statement
For the Year Ended December 31, 2017 (in thousands)
	Cost of goods sold:
			Cost of goods sold
	Operating costs:
			Total operating costs
	Operating income/(loss)

	Beginning of	End of
Shipman Corporation	2017	2017
Direct materials inventory	$133,000	$66,000
Work-in-process inventory	165,000	146,000
Finished-goods inventory	245,000	202,000
Purchases of direct materials		263,000
Direct manufacturing labor		214,000
Indirect manufacturing labor		104,000
Plant insurance		2,000
Depreciationplant, building, and equipment		41,000
Plant utilities		22,000
Repairs and maintenanceplant		18,000
Equipment leasing costs		63,000
Marketing, distribution, and customer-service costs		121,000
General and administrative costs		69,000