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
		Beginning balance in work in process				$200,000
		Add current manufacturing costs:
		Direct Material			$2,000,000
		Direct Labor			2,400,000
		Manufacturing overhead			1,700,000	Formula
		Selling expense				250,000
		General and administrative expenses				450,000
		Sales				$8,000,000
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			$8,000,000
		Less cost of goods sold:
		Beginning balance in finished goods			$500,000
		Manufacturing Overhead			1,700,000
		Ending balance in finished goods			400,000
					Amount	Formula
		Title				Formula
		Less nonmanufacturing expenses:
		Title			Amount
		Title			Amount	Formula
		Title				Formula