Question
Open-ended Problem. Perfection Craft Company. You must upload and submit a file for this question before time is up. The following selected information was extracted
Open-ended Problem. Perfection Craft Company. You must upload and submit a file for this question before time is up. The following selected information was extracted from the 2022 accounting records of Perfection Craft Company:
| |||
Raw material purchases | $ | 176,000 |
|
Direct labor |
| 256,000 |
|
Indirect labor |
| 108,000 |
|
Selling and administrative salaries |
| 133,000 |
|
Building depreciation* |
| 80,000 |
|
Other selling and administrative expenses |
| 195,000 |
|
Other factory costs |
| 342,000 |
|
Sales revenue ($130 per unit) |
| 1,495,000 |
|
|
*Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used for selling and administrative functions. Inventory data:
| January 1 | December 31 | ||||
Raw material | $ | 15,900 |
| $ | 18,200 |
|
Work in process |
| 35,800 |
|
| 62,100 |
|
Finished goods* |
| ? |
|
| 97,900 |
|
|
Required: Part a. Prepare the companys (detailed) Schedule of Cost of Goods manufactured. Part b. The companys cost of goods sold for the period is $928,000. Prepare the companys (detailed) Cost of Goods Sold section of the Income Statement including showing finished goods inventory on January 1.
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