Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Northern Illinois Manufacturing provides products and the services needed to irrigate farms, parks, commercial products, and private homes. It has a centrally located factory that

image text in transcribed
Northern Illinois Manufacturing provides products and the services needed to irrigate farms, parks, commercial products, and private homes. It has a centrally located factory that manufactures the products it markets to retail outlets across the nation. The month of November has just ended and Northern Illinois needs to generate a cost of goods manufactured and cost of goods sold for its income statement. The application of overhead is based on direct labor hours. At the beginning of the year, the company estimated direct labor hours of 40,000 and total estimated overhead of $2,000,000. During the month of November, the number of direct labor hours was 3,375. The following additional data for November is provided: Indirect Materials in Manufacturing Overhead S 17.250 Advertising Expense 54,000 Depreciation - Factory Equipment 16,800 Depreciation - Office Equipment 2,500 Direct Labor 83.000 Factory Supplies 11,800 Factory Utilities 12.200 Finished Goods Inventory - November 30 62,800 Finished Goods Inventory - October 31 71,700 Indirect Labor 58.000 Office Supplies Expense 2.400 Other Administrative Expenses 62.000 Raw Materials Inventory - November 30 53.700 Raw Materials Inventory - October 31 28.000 Raw Materials Purchases 185.400 Rent - Factory Equipment 57.000 Repairs - Factory Equipment 5.200 Salaries 323.000 Sales 1,350,000 Sales Commissions Work In Process Inventory - November 30 80.900 Work In Process Inventory - October 31 75.100 Property Tax on Factory 5.500 40.500 Instructions: From the above information, prepare a cost of goods manufactured schedule, cost of goods sold schedule, and an income statement to the net operating income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2022

Authors: Jeanette Landin

8th Edition

126072879X, 9781260728798

More Books

Students also viewed these Accounting questions

Question

What is a corporation?

Answered: 1 week ago