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Petraco Manufacturing Corporation had the following balances on selected accounts and transactions at January 1, 2020 Materials $80,000 Work in Process $70,000 Finished Goods $30,000
Petraco Manufacturing Corporation had the following balances on selected accounts and transactions at January 1, 2020
- Materials $80,000
- Work in Process $70,000
- Finished Goods $30,000
Selected transactions for January 2020:
- Purchases materials $200,000
- Material used in January: Direct ($130,000) Indirect ($10,000)
- Direct Labor ($150,000) Indirect Labor ($24,000)
- Administrative salaries for January $100,000
- Utilities (Power, Gas, Telephone, Water, Internet) bills totaling $50,000 (80% manufacturing)
- Depreciation and amortization for the month was $100,000 (75% for manufacturing)
- Lease payments for the month $50,000 (70% for manufacturing facilities)
- At January 31, 2020 (Work in Process $35,000, Finished Goods $40,000)
Required:
- Prepare a Cost of Goods Manufactured for January 2020 (Products costs)
- Compute period costs incurred during January.
- Prepare Cost of Goods Sold section of the Income Statement.
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