Question
The following data for the just completed year ended September 30, 2021 are taken from the accounting records of Deliverance Company: Advertising expense $ 200,000
The following data for the just completed year ended September 30, 2021 are taken from the accounting records of Deliverance Company:
Advertising expense $ 200,000
Direct labour cost 180,000
Purchases of raw materials 284,000
Rent building (60% factory, 40% offices) 10 0,000
Indirect factory labour 112,600
Sales commissions 90,000
Utilities, factory 28,000
Office Salaries 120,000
Maintenance, factory equipment 48,000
Sales 1,450,000
Supplies, factory 1,400
Depreciation, office equipment 16,000
Depreciation, factory equipment 80,000
Inventories
Beginning Ending
Raw materials $20,000 $ 24,000
Work in process 30,000 60,000
Finished goods 180,000 80,000
Required:
1. Prepare a schedule of cost of goods manufactured for the year in good form. (10 marks)
Answer parts 1 and 2 in the space provided on page 2.
2. Prepare an income statement for the year in good form.
3. What are the total conversion costs for the year?__
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