Requirement 1. Prepare a schedule for the cost of goods manufactured for 2017.

Peterson Company Beginning of 2017 End of 2017 Direct materials inventory = 26,000/27,000 Work-in-process inventory = 25,000/23,000 Finished goods inventory = 17,000/21,000 Purchases of direct materials = 71,000 Direct manufacturing labor = 24,000 Indirect manufacturing labor =10,000 Plant insurance = 9,000 Depreciationplant, building, and equipment = 12,000 Repairs and maintenanceplant = 3,000 Marketing, distribution, and customer-service costs = 95,000

General and Admins Costs = 22,000

Begin by preparing the schedule of cost of goods manufactured (in thousands). Start with the direct materials and labor costs, then indirect manufacturing costs, and complete the schedule by calculating cost of goods manufactured.

Howell Company
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 2017 (in thousands)
Direct materials:
Direct materials used
Direct manufacturing labor

Indirect manufacturing costs:
Total indirect manufacturing costs

Manufacturing costs incurred during 2017
Total manufacturing costs to account for
Cost of goods manufactured

Requirement 2. Revenues for 2017 were $310 million. Prepare the income statement for 2017.

(Use parentheses or a minus sign for operating losses.)

Howell Company
Income Statement
For the Year Ended December 31, 2017 (in thousands)
	Cost of goods sold:
			Cost of goods sold
	Operating costs:
			Total operating costs
	Operating income/(loss)