Question 1: Use the information to prepare a schedule of Cost of goods Manufactured, and income statement.

Item

Raw Materials inventory, January 1

Raw Materials inventory, December 31 Work in process inventory, January 1 Work in process inventory, December 31

Finished goods inventory, January 1 Finished goods inventory, December 31 Raw Materials purchases

Sales

Direct labor

Indirect labor

Maintenance and repairs-factory expense

Factory utilities expense

Selling expenses

Depreciation expense factory building Depreciation expense factory equipment

Administrative expenses Other expense factory

Amount

40,000

30,000

30,000

60,000

50,000

60,000

480,000

1,800,000

380,000

120,000

60,000

10,000

300,000

20,000

30,000

200,000

20,000