Question 1

01. Samuels Itd has incurred the following costs for the year Costs Incurred: Sales Revenue $ 319,000 Purchases of raw materials 35,000 Indirect materials 10,000 Direct Labor 24,000 Maintenance, factory Equipment 3,000 Advertising Expense 30,000 Insurance, factory equipment 800 Salaries (of Factory workers) 35,000 Office supplies 200 Rent(Factory uses 55%, Administrative and sales use the rest) 10,000 Factory Cleaning Supplies 4,200 Purchase of Factory Machine 18000 Depreciation(30% for office furniture & rest for office equipment) 3,000 Inventories Beginning of the Year End of the Year Raw Materials $4,000 $10,000 Work in process $12,000 $6,000 Finished goods $11,000 $20,000 On the basis of above information: (a) Prepare a schedule of cost of goods sold (b) Prepare income statement for the year