Problem P2-1 Cost of Goods Manufactured, Cost of Goods Sold, and Income

The following information is available for Satterfield's Custom Glass for the fiscal year ending December 31, 2011:

Beginning balance in Work In Process $200,000

Ending balance in Work In Process 300,000

Beginning balance in Finished Goods 500,000

Ending balance in Finished Goods 400,000

Direct material cost 2,000,000

Direct labor cost 2,400,000

Manufacturing overhead 1,700,000

Selling expense 250,000

General and administrative expenses 450,000

Sales 8,000,000

Required:

Part a. Prepare a schedule of costs of goods manufactured.

Satterfield's Custom Glass

Schedule of Cost of Goods Manufactured

For the Year Ended December 31, 2011

Title Amount

Add current manufacturing costs:

Title Amount

Title Amount

Title Amount Formula

Total Formula

Title Amount

Title Formula

Part b. Prepare an income statement for fiscal 2011. Ignore income taxes.

Satterfield's Custom Glass

Income Statement

For the Year Ended December 31, 2011

Sales Amount

Less cost of goods sold:

Title Amount

Title Amount

Title Formula

Title Amount Formula

Title Formula

Less nonmanufacturing expenses:

Title Amount

Title Amount Formula

Title Formula