Question
Required information [The following information applies to the questions displayed below.] Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances
Required information
[The following information applies to the questions displayed below.] Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1.
Inventory Classification | January 1, 20x1 | December 31, 20x1 | |||||
Raw material | $ | 60,000 | $ | 70,000 | |||
Work in process | 120,000 | 115,000 | |||||
Finished goods | 170,000 | 165,000 | |||||
During 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows:
Indirect material | $ | 8,000 | |
Indirect labor | 26,000 | ||
Depreciation on plant and equipment | 100,000 | ||
Utilities | 25,000 | ||
Other | 30,000 | ||
Sales revenue was $1,107,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firms tax rate is 40 percent.
2. Prepare a schedule of cost of goods sold.
Required information [The following information applies to the questions displayed below.] Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1 Inventory Classification Raw material Work in process Finished goods January 1, 20x1 $ 60,000 120,000 170,000 December 31, 20x1 $ 70,000 115,000 165,000 During 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows: Indirect material Indirect labor Depreciation on plant and equipment Utilities Other $ 8,000 26,000 100,000 25,000 30,000 Sales revenue was $1,107,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm's tax rate is 40 percent. 2. Prepare a schedule of cost of goods sold ALEXANDRIA ALUMINUM COMPANY Schedule of Cost of Goods Sold For the Year Ended December 31, 20x1 $ 170,000 Finished-goods inventory, January 1 Add: Cost of goods manufactured Cost of goods available for sale Less: Finished-goods inventory, December 31 Cost of goods soldStep by Step Solution
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