Q8

Prepare the income statement for West Nautical Company for the most recent year. Use the calculation of cost of goods sold, cost of goods manufactured, and the amounts below. Assume that the company sold 32,000 units of its product at a price of $11 each during the year. (Click the icon to view the amounts.) (Click the icon to view the calculation of cost of goods manufactured.) (Click the icon to view the calculation of cost of goods sold.) \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{\begin{tabular}{|c|} West Nautical Industries \\ Calculation of Cost of Goods Manufactured \end{tabular}} \\ \hline \multicolumn{4}{|c|}{ For Current Year } \\ \hline \multicolumn{2}{|c|}{ Beginning work in process inventory } & $ & 39,000 \\ \hline \multirow[t]{4}{*}{ Plus: } & Manufacturing costs incurred & & \\ \hline & Direct materials used & $ & 76,000 \\ \hline & Direct labor & & 80,000 \\ \hline & Manufacturing overhead & & 68,000 \\ \hline \multicolumn{2}{|c|}{ Total manufacturing costs to account for } & & 263,000 \\ \hline \multicolumn{2}{|c|}{ Less: Ending work in process inventory } & & 37,000 \\ \hline \multicolumn{2}{|c|}{ Cost of goods manufactured (CGM) } & $ & 226,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline & \multicolumn{3}{|c|}{\begin{tabular}{c} Beginning \\ of Year \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{c} End of \\ Year \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{c} End of \\ Year \end{tabular}} \\ \hline Raw materials inventory & $ & 26,000 & $ & 27,000 & Insurance on plant & $ & 8,500 \\ \hline Work in process inventory & $ & 39,000 & $ & 37,000 & Depreciation-plant building and equipment & $ & 12,900 \\ \hline Finished goods inventory. & $ & 18,000 & $ & 22,000 & Repairs and maintenance-plant & $ & 3,600 \\ \hline Purchases of direct materials & & & $ & 77,000 & Marketing expenses & $ & 76,000 \\ \hline Direct labor. & & & $ & 80,000 & General and administrative expenses & $ & 23,500 \\ \hline Indirect labor. & & & $ & 43,000 & & & \\ \hline \end{tabular}