- The company's tax rate is 15%

Question:

_{Prepare a corrected multi-step income statement for the year ended December 31, 2016.}

Universal Fashion Inc. Schedule of Cost of Goods Manufactured at December 31, 2016 Direct materials purchased. Direct manufacturing labor 2 Manufacturing overhead: Indirect materials Indirect manufacturing labor costs Research and development expense Factory rent Factory insurance $2,000- 7,000 Factory utilities Prepaid advertising expense Factory bonus payable Other indirect manufacturing costs 3,000 46,000 . 6,000 1,000- (3,000) 4,000- _ Total manufacturing overhead Cost of goods manufactured 95.000 S238,000v 2 The accountant did not take the following items into consideration when preparing the statements above. a. Factory equipment was purchased October 1, 2016 and has a useful life of 5 years with $2,080 salvage (residual) value The company uses the straight-line method of depreciation b. Inventory balances for 2016 are: December 31, 2016- January 1.2016 S6,000 Direct materials Work-in-process Finished goods 10,000- 28,000 ....25,000