Exercise 2-29 Schedules of Cost of Goods Manufactured and Sold; Income Statement (LO 2-1, 2-3, 2-6)

[The following information applies to the questions displayed below.] Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1.

Inventory Classification	January 1, 20x1				December 31, 20x1
Raw material	$	55,000			$	70,000
Work in process		120,000				115,000
Finished goods		150,000				165,000

During 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows:

Indirect material	$	12,000
Indirect labor		26,000
Depreciation on plant and equipment		100,000
Utilities		24,000
Other		30,000

Sales revenue was $1,105,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firms tax rate is 40 percent.

Exercise 2-29 Part 1

Required:

1. Prepare a schedule of cost of goods manufactured