1. Income Statement, Cost of Goods Manufactured

   Spencer Company produced 200,000 cases of sports drinks during the past calendar year. Each case of 1-liter bottles sells for $37. Spencer had 2,500 cases of sports drinks in finished goods inventory at the beginning of the year. At the end of the year, there were 11,500 cases of sports drinks in finished goods inventory. Spencers accounting records provide the following information:

   Purchases of direct materials	$2,360,000
   Direct materials inventory, January 1	290,000
   Direct materials inventory, December 31	116,000
   Direct labor	1,200,000
   Indirect labor	334,000
   Depreciation, factory building	525,000
   Depreciation, factory equipment	416,000
   Property taxes on factory	65,000
   Utilities, factory	150,000
   Insurance on factory	200,000
   Salary, sales supervisor	85,000
   Commissions, salespersons	218,000
   Advertising	500,000
   General administration	390,000
   Work-in-process inventory, January 1	440,000
   Work-in-process inventory, December 31	750,000
   Finished goods inventory, January 1	107,500
   Finished goods inventory, December 31	488,750

   Required:

   1. Prepare a cost of goods manufactured statement.

   Spencer Company
   Statement of Cost of Goods Manufactured
   For the Year Ended December 31
   Direct materials:
   	$
   	$
   		$
   Manufacturing overhead:
   	$
   Total manufacturing costs added		$
   Cost of goods manufactured		$

   2. Compute the cost of producing one case of sports drink last year. If required, round your answer to the nearest cent.

   $ per case

   3. Prepare an income statement on an absorption-costing basis. Show the percentage of sales that each line item represents. Round the percent to four decimal places before converting to a percentage. For example, .88349 would be rounded to .8835 and entered as 88.35.

   Spencer Company
   Income Statement: Absorption Costing
   For the Year Ended December 31
   			Percent
   			%
   Cost of goods sold:
   			%
   Less: Operating expenses:
   			%
   			%
   			%