Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job interview as a summer intern at
Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job interview as a summer intern at Mesa, the cost accountant provides you with the following (fictitious) data for the year (in $000):
Inventory information: | 1/1/00 | 12/31/00 | ||
Direct materials | $ | 53 | $ | 60 |
Work-in-process | 81 | 73 | ||
Finished goods | 992 | 1,018 | ||
|
Other information: | For the year 00 | |
Administrative costs | $ | 2,600 |
Depreciation (Factory) | 3,030 | |
Depreciation (Machines) | 4,670 | |
Direct labor | 7,000 | |
Direct materials purchased | 5,200 | |
Indirect labor (Factory) | 1,720 | |
Indirect materials (Factory) | 530 | |
Property taxes (Factory) | 210 | |
Selling costs | 1,120 | |
Sales revenue | 32,610 | |
Utilities (Factory) | 580 | |
|
Required:
Prepare the income statement with a supporting cost of goods sold statement. (Enter your answers in thousands of dollars (i.e., 234,000 should be entered as 234).)
MESA DESIGNS Income Statement For the Year Ended December 31 ($000) Total selling and administrative costs
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started