Question
Design works International manufactures custom tiles.The following information relates to the fiscal year ending December 31, 2015 Beginning balance in raw material inventory $200,000 Purchases
Design works International manufactures custom tiles.The following information relates to the fiscal year ending December 31, 2015
Beginning balance in raw material inventory $200,000
Purchases of raw material800,000
Ending balance in raw material inventory100,000
Beginning balance in work-in-process400,000
Ending balance in work-in-process200,000
Direct labor cost1,000,000
Manufacturing overhead applied500,000
Beginning balance in finished goods600,000
Ending balance in finished goods300,000
Sales4,000,000
Selling expenses250,000
General and administrative expenses550,000
Required
a.Prepare a schedule of cost of goods manufactured.Assume there is no indirect material costs.
b. Prepare and income statement for the fiscal 2015.Ignore income tax.
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