Statement of Cost of Goods Manufactured and Multiple-Step Income Statement Required:

Using the adjusted trial balance attached for Buttross Manufacturing, Inc., prepare statements for the fiscal year ended September 30, 2020, in good form:

Part 1: Prepare a Statement of Cost of Goods Manufactured

Part 2: Prepare a Multiple-Step Income Statement

This company keeps the indirect materials in a separate factory supplies account, so they should not be subtracted from raw material used. All raw materials used are direct materials.

Some important things to consider for good form: Do not simply show total factory overhead in the Statement of Cost of Goods Manufactured with the detail of factory overhead in a separate schedule outside the statement. Show the detail of factory overhead in the Statement of Cost of Goods Manufactured. Do not show cost of goods sold inside the income statement with the computation in a separate schedule outside the statement. Show the computation of cost of goods sold in the income statement. Do not simply show total operating expenses in the income statement. Show the detail of operating expenses in the income statement.