PROBPEM III The following information is taken from December 31, 2008, adjusted Trial Balance and other records of OTW Company before the calendar year-end closing entries are recorded. Advertising expense $ 44,000 Direct Labor $ 603,250 Depreciation expense ? Office equipment 6,100 Income taxes expense 212,000 Depreciation expense ? Selling expense 7,560 Indirect labor 65,070 Depreciation expense ? Factory equipment 32,420 Miscellaneous 6,125 Factory supervision 99,100 Office salaries expense 53,000 Factory supplies used 8,400 Raw Materials purchases 975,000 Factory utilities 39,000 Rent expense ? Office space 18,000 Inventories 0 Rent expense ? Selling expense 33,800 Raw materials, January 1, 2008 492,350 Rent expense ? Factory Building 56,790 Raw materials, December 31, 2008 272,000 Maintenance 34,500 Goods in process, January 1, 2008 718,300 Sales 5,979,000 Goods in process, December 31, 2008 19,080 Sales Discounts 232,500 FILE ATTACHED Finished goods, January 1, 2008 542,500 Sales salaries expense 382,160 Finished goods, December 31, 2008 186,000 Required: 1. Prepare the 2008 cost of goods manufactured statement for the company. 2. Prepare the 2008 income statement for the company that reports separate categories for : a. selling expenses b. general and administrative expense

PROBPEM III The following information is taken from December 31, 2008, adjusted Trial Balance and other records of OTW Company before the calendar yearend closing entries are recorded. Advertising expense $ 44,000 Direct Labor $ 603,250 Depreciation expense - Office equipment 6,100 Income taxes expense Depreciation expense - Selling expense 7,560 Indirect labor 65,070 Depreciation expense - Factory equipment 32,420 Miscellaneous 6,125 Factory supervision 99,100 Office salaries expense Factory supplies used Factory utilities 8,400 39,000 Raw Materials purchases 212,000 53,000 975,000 Rent expense - Office space 18,000 0 Rent expense - Selling expense 33,800 Raw materials, January 1, 2008 492,350 Rent expense - Factory Building 56,790 Raw materials, December 31, 2008 272,000 Maintenance 34,500 Goods in process, January 1, 2008 718,300 Sales Inventories Goods in process, December 31, 2008 19,080 Finished goods, January 1, 2008 542,500 Finished goods, December 31, 2008 Sales Discounts 232,500 Sales salaries expense 382,160 186,000 Required: 1. Prepare the 2008 cost of goods manufactured statement for the company. 2. Prepare the 2008 income statement for the company that reports separate categories for : a. selling expenses b. general and administrative expense 5,979,000