QUESTION 5 (20 Marks)

The following data refers to Trustel for the year 2019:

Sales............................................................................. $2,105,000

Raw-materials inventory, Dec. 31/18........................... 89,000

Purchases of raw material in 2019............................... 731,000

Raw-materials inventory, Dec. 31/19........................... 59,000

Conversion Costs......................................................... 1,054,000

Selling and administrative expenses............................ 269,000

Indirect labour cost incurred......................................... 150,000

Property taxes on factory............................................. 90,000

Amortization on factory building.................................... 125,000

Income tax expense..................................................... 25,000

Indirect material used................................................... 45,000

Amortization factory equipment.................................... 60,000

Insurance on factory and equipment............................ 40,000

Utilities for factory......................................................... 70,000

Work-in-process inventory, Dec. 31/18....................... 0

Work-in-process inventory, Dec. 31/19....................... 40,000

Finished goods inventory, Dec. 31/18.......................... 35,000

Finished goods inventory, Dec. 31/19.......................... 40,000

REQUIRED:

1.Make Trustel schedule of cost of goods manufactured for 2019 in proper format.

2.Make Trustel schedule of cost of goods sold for 2019 in proper.