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The following selected account balances are provided for Delray Mfg. $ Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning

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The following selected account balances are provided for Delray Mfg. $ Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases Direct labor Factory supplies used (indirect materials) Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, ending Work in process inventory, ending Finished goods inventory, ending 1,216,000 43,000 57,500 64,900 183,700 231,000 21,500 56,eee 5,250 55,000 85,000 140,000 46,200 45, 100 71,400 Prepare an income statement for Delray Mfg. (a manufacturer) DELRAY MFG. Income Statement For Year Ended December 31, Year 1 $ 1,216,000 Sales Cost of goods sold Cost of goods available for sale Prepare an income statement for Delray Mfg. (a manufacturer). DELRAY MFG. Income Statement For Year Ended December 31, Year 1 $ 1,216,000 Sales Cost of goods sold Cost of goods available for sale 0 Cost of goods sold ............................................ Gross profit Operating expenses Advertising expense General and administrative expenses 85,000 140,000 Total operating expenses Operating income 225,000 $ (225,000) DELRAY MFG. Schedule of Cost of Goods Manufactured For Year Ended December 31, Year 1 Direct materials Raw materials inventory, beginning $ 43,000 Less: Raw materials purchases 183,700 Raw materials available for use 226,700 | Add: Raw materials inventory, ending 46,200 Direct materials used Direct labor $ 180,500 231,000 Factory overhead: Factory supplies used Indirect labor Repairs-Factory equipment Rent cost of factory building 21,500 56,000 5,250 55,000 Total factory overhead costs Total manufacturing costs Add: Work in process inventory, beginning Total cost of work in process Less: Work in process inventory, ending Cost of goods manufactured 137,750 549,250 57,500 606,750 45,100 $ 561,650

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