Question
Part I. (16 Points). Information for Luqmann, Inc., as of December 31 follows. Prepare a schedule of cost of goods manufactured for the year ended
Part I. (16 Points).
Information for Luqmann, Inc., as of December 31 follows. Prepare a schedule of cost of goods manufactured for the year ended December 31.
| Administrative salaries | $ 35,000 |
| Depreciation of factory equipment | 25,000 |
| Depreciation of delivery vehicles | 6,000 |
| Direct labor | 68,000 |
| Factory supplies used | 9,000 |
| Finished goods inventory, January 1 | 57,000 |
| Finished goods inventory, December 31 | ? |
| Factory insurance | 15,500 |
| Interest expense | 12,000 |
| Factory utilities | 14,000 |
| Factory maintenance | 7,500 |
| Raw materials inventory, January 1 | 5,000 |
| Raw materials inventory, December 31 | 5,000 |
| Raw material purchases | 125,000 |
| Rent on factory building | 25,000 |
| Repairs of factory equipment | 11,500 |
| Sales commissions | 37,500 |
| Work in Process inventory, January 1 | 3,500 |
| Work in Process inventory, December 31 | 2,700 |
Part II. (24 Points).
Information for Pidris Metalworks as of December 31 follows.
Prepare (a) the company's schedule of cost of goods manufactured for the year ended December 31; (12 Points).
(b) prepare the company's income statement that reports separate categories for selling and general and administrative expenses. (12 Points).
| Administrative salaries expense | $ 135,000 |
| Depreciation expenseFactory equipment | 52,400 |
| Depreciation expenseDelivery vehicles | 36,200 |
| Depreciation expenseOffice equipment | 24,800 |
| Advertising expense | 22,350 |
| Direct labor | 268,000 |
| Factory supplies use | 12,000 |
| Income taxes expense | 91,500 |
| Indirect labor | 35,000 |
| Indirect material | 24,000 |
| Factory insurance | 15,500 |
| Factory utilities | 14,000 |
| Factory maintenance | 7,500 |
| Inventories |
|
| Raw materials inventory, January 1 | 32,000 |
| Raw materials inventory, December 31 | 28,000 |
| Work in Process inventory, January 1 | 33,780 |
| Work in Process inventory, December 31 | 37,460 |
| Finished goods inventory, January 1 | 56,970 |
| Finished goods inventory, December 31 | 62,000 |
| Raw materials purchases | 325,000 |
| Rent expenseFactory | 50,000 |
| Rent expenseOffice space | 24,000 |
| Rent expenseSelling Space | 24,000 |
| Sales salaries expense | 97,500 |
| Sales | 1,452,000 |
| Sales discounts | 29,000 |
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