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Information about Hannah Industries for the month ending December 31, 2019, is as follows: Sales Cost of goods sold Net operating income Beginning inventories:
Information about Hannah Industries for the month ending December 31, 2019, is as follows: Sales Cost of goods sold Net operating income Beginning inventories: Direct materials Work in process Finished goods $450,000 329,000 22,000 70,000 28,000 90,000 Ending direct materials is 10 percent smaller than beginning direct materials. Ending work in process is 75 percent of the beginning work in process. Ending finished goods increased by $15,000 during the year. Prime costs and conversion costs are 60 percent and 80 percent of total manufacturing costs added, respectively. Assume no income taxes or indirect materials. Required: a. Prepare a statement of cost of goods manufactured for December. b. Prepare an absorption income statement for December. c. Calculate prime costs. d. Calculate conversion costs.
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