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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

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 $36. 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 31 110,000
Direct labor 1,100,000
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 214,000
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:
%
%
%

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