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The following data relates to the Katy Co.: Direct Materials Inventory,Beginning$150 Direct Materials Inventory,Ending$110 Direct MaterialsPurchases$620 DirectLabor$350 FactoryOverhead$540 Work-in-Process Inventory,Beginning$260 Work-in-Process Inventory,Ending$280 Finished Goods Inventory,Beginning$820
The following data relates to the Katy Co.:
Direct Materials Inventory,Beginning$150
Direct Materials Inventory,Ending$110
Direct MaterialsPurchases$620
DirectLabor$350
FactoryOverhead$540
Work-in-Process Inventory,Beginning$260
Work-in-Process Inventory,Ending$280
Finished Goods Inventory,Beginning$820
Finished Goods Inventory,Ending$740
SalesRevenue$2,500
Selling and AdministrativeExpenses$300
Income TaxRate20%
Required:
a) Prepare a Statement of Cost of Goods Manufactured.
b) Prepare an Income Statement.
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