Question 4

Angler Company is a manufacturer of toys.Its controller, Joyce Rotzen, resigned in August.An inexperienced assistant accountant has prepared the following income statement for the month of August (utilice el ao que esta tomando el curso)

ANGLER COMPANY

Income Statement

For the Month Ended August

Sales (net) $ 675,000

Less: Operating expenses

Raw materials purchases$ 200,000

Direct labor cost 160,000

Advertising expense 75,000

Selling and administrative salaries70,000

Rent on factory facilities 60,000

Depreciation on sales equipment50,000

Depreciation on factory equipment35,000

Indirect labor cost 20,000

Utilities factory 10,000

Insurance factory 5,000685,000

Net loss $(10,000)

Traduccin - Antes de agosto la compaa haba tenido buenas ganancias cada mes.El presidente de la compaa tiene cierta receptividadacerca de la exactitud de los estados financieros.Como un amigo del presidenteeste te solicita que revises las correccionesnecesarias.Despus de examinar otros datos de costo de manufactura tienes informacin incluida de los balances de inventario.

1. Inventory balances at the beginning and end of August were:

August 1 August 31

Raw materials $ 19,500 $ 30,000

Work in process25,00021,000

Finished goods40,00064,000

Instructions:

1. Prepare cost of goods manufactured schedule for August 2005. TOTAL24 puntos
2. Prepare correct Income Statement Total 30 puntos