Step Instructions Points Possible 1 21 Prepare the income statement for West Nautical Company in for the most recent year. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) a. Check your spelling carefully and do not abbreviate. b. Follow the format in the exhibit that shows the Manufacturer's Income Statement. c. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted Total Points 21 Building Blocks of Managerial Accounting Prepare Income Statement Review the following amounts for West Nautical Company. Assume that the Raw Materials Inventory contains only direct materials. The Calculation of Direct Materials Used, Schedule of Cost of Goods Manufactured, and Calculation of Cost of Goods Sold can be found under the "COSTOFGOODSSOLD"tab. Beginning End of of Year Year End of Year Raw materials inventory $ 23,000 $ 25,000 Insurance on plant $ 11,500 Work in process inventory $ 35,000 $ 31,000 Depreciation-plant building and equipmen $ 13,400 Finished goods inventory $ 20,000 $ 22,000 Repairs and maintenance-plant $ 3,700 Purchases of direct materials $ 74,000 Marketing expenses $ 77,000 Direct labor $ 86,000 General and administrative expenses $ 28,500 Indirect labor $ 42,000 Assume that the company has the following sales during the year: Price per Units sold unit 34,000 $ 12 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Requirement Prepare the income statement for West Nautical Company in for the most recent year. a. Check your spelling carefully and do not abbreviate. b. Follow the format in the exhibit that shows the Manufacturer's Income Statement. c. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted. Saving & Submitting Solution 1 Save file to desktop. a. Create folder on desktop, and label COMPLETED EXCEL PROJECTS 2 Upload and submit your file to be graded. a. Navigate back to the activity window-screen where you downloaded the initial spreadsheet b. Click Choose button under step 3; locate the file you just saved and click Open C. Click Upload button under step 3 d. Click Submit button under step 4 Viewing Results 1 Click on Results tab in My AccountingLab 2 Click on the Assignment you were working on 3 Click on Project link; this will bring up your Score Card 4 Within Score Card window, click on Live Comments Report (lower right) to download spreadsheet with feedback *DATA SHEET -- DO NOT ENTER ANSWERS HERE** Calculation of Direct Materials Used Beginning Raw Materials Inventory $ Plus: Purchases of direct materials Materials available for use $ Less: Ending Raw Materials Inventory Direct materials used $ 23,000 74,000 97,000 25,000 72,000 Schedule of Cost of Goods Manufactured Beginning Work in Process Inventory $ 35,000 Plus Manufacturing costs incurred: Direct materials used 72,000 Direct labor 86,000 Manufacturing overhead 70,600 Total manufacturing costs to account for $ 263,600 Less: Ending Work in Process Inventory 31,000 Cost of goods manufactured $ 232,600 Calculation of Cost of Goods Sold Beginning Finished Goods Inventory $ Plus: Cost of goods manufactured Cost of goods available for sale $ Less: Ending Finished Goods Inventory Cost of goods sold $ 20,000 232,600 252,600 22,000 230,600
