Question
The following information is for Cena, Co., Dec. 31, 2020. Raw materials inventory beginning balance $15,000 Raw materials inventory ending balance $12,000 Work-in-process inventory beginning
The following information is for Cena, Co., Dec. 31, 2020.
Raw materials inventory beginning balance $15,000 Raw materials inventory ending balance $12,000
Work-in-process inventory beginning balance $825,000
Work-in-process inventory ending balance $900,000
Finished goods inventory beginning balance $615,000
Finished goods inventory ending balance $525,000
Raw material purchases $150,000
Direct labor used in production $187,500
Manufacturing overhead $945,000
selling costs $135,000
General and administrative $360,000
sales revenue $1,897,500
Of the total raw material amount given, $18,000 was for indirect materials.
1. Calculate the cost of direct materials used in production.
2. Calculate the cost of goods manufactured.
3. Calculate the cost of cost of goods sold.
4. Prepare an income statement for the year ending December 31, 2020
Please show work, I'm trying to understand how to calculate it
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