Problem 3

Gibsons Glassworks manufactures glass decanters and had the following information for the year ended 12/31/15:

Inventories Beginning Ending

Raw Materials $ 58,000 $ 22,000

Work-in-Process 100,000 63,000

Finished Goods 47,000 51,000

Other information:

Depreciation on production facility/equipment $ 13,000

Raw material purchases 157,000

Insurance on factory 21,000

Sales salaries 46,000

Repairs and maintenance on factory equipment 4,000

Indirect labor 30,000

Direct labor 129,000

Administrative expenses 56,000

Show the flow of costs through the three inventory accounts.

Prepare in good form a cost of good manufactured statement.

What amount would appear on an income statement and in which account?