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Please see attached file to see if you can help me with this question I-17.04 Financial statements of a manufacturer Grange Corporation is a manufacturer
Please see attached file to see if you can help me with this question
I-17.04 Financial statements of a manufacturer Grange Corporation is a manufacturer of precision drill bits. The bits are sold to machine and equipment dealers, and marketing is handled via a network of regionalized manufacturer representatives. The only selling expenses pertain to commissions paid to the manufacturer representatives. The commissions are 7% of total sales. The following information pertains to operations during the calendar year 20X9. Sales $14,409,435 Administrative salaries 876,090 Direct labor 3,399,674 Indirect labor 1,232,055 Total depreciation 310,300 Total utilities 260,000 Interest expense 67,500 Other factory overhead 77,454 Of the total depreciation, 70% relates to manufacturing and 30% relates to general and administrative costs. Of the total utilities, 60% relates to manufacturing and 40% relates to general and administrative costs. Income taxes are 33% of income before taxes. Following is information about various inventory components: Beginning balance Purchases Ending balance Raw Materials Indirect Materials Work in Process Finished Goods $ 775,090 $55,080 $1,213,678 $1,242,664 4,334,665 320,500 n/a n/a 812,332 71,715 944,070 1,553,509 (a) Use the above information to construct a schedule of cost of goods manufactured for the year ending December 31, 20X9. (b) Use the above information to construct a schedule of cost of goods sold for the year ending December 31, 20X9. (c) Use the above information to construct an income statement for the year ending December 31, 20X9Step by Step Solution
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