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NE Corporation manufactures wooden sailboats. They had the following activities during 2022 Inventories: RM Inventory January 1, 2022 $200,000 Work in process inventory, January 1,2022
NE Corporation manufactures wooden sailboats. They had the following activities during 2022 Inventories: RM Inventory January 1, 2022 $200,000 Work in process inventory, January 1,2022 64,000 Finished goods inventory, January 1, 2022 80,000 RM Inventory December 31,2022 210,000 Work in process inventory, December 31,2022 120,000 Finished goods inventory, December 31, 2022 150,000 Purchases of raw materials 318,000 Wood cutter's salaries (DL) 50,000 Plant Supervisor Salaries 60,000 Assembly Salaries (DL) 65,000 Quality Inspectors\" salaries 90,000 Marketing Department Salaries 45,000 Accounting Department Salaries 40,000 Plant Manager Salary 50,000 Company President Salary 80,000 Utilities (1/2 plant; V2 corporate) 50,000 Depreciation: plant and equipment 45,000 Freight Out 12,000 Sales revenues 1,500,000 Sales Commissions 75,000 Required: (a) Prepare a schedule of cost of goods sold for 2022. (b) Prepare an income statement for 2022 (through operating income). Beginning RM Inventory + Raw Materials Purchases - Ending RM Inventory = DM Used in Production + Direct Labor + Manufacturing Overhead = Total Manufacturing Cost + Beginning WIP - Ending WIP = COGM + Beginning FG - Ending FG = COGS Income Statement Sales - COGS = Gross Profit - SG&A Expenses = Operating Income
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