There are 11 rows for the cost of goods and 9 rows for the income statement so list them down in the right format

W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for $400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips accounting records provide the following information:

Purchases of raw materials	$320,000
Beginning materials inventory	46,800
Ending materials inventory	66,800
Direct labor	200,000
Indirect labor	40,000
Rent, factory building	42,000
Depreciation, factory equipment	60,000
Utilities, factory	11,900
Salary, sales supervisor	90,000
Commissions, salespersons	180,000
General administration	300,000
Beginning work-in-process inventory	13,040
Ending work-in-process inventory	14,940
Beginning finished goods inventory	80,000
Ending finished goods inventory	114,100

Required:

1.

Prepare a statement of cost of goods manufactured.

2.

Compute the average cost of producing one unit of product in the year.

3.

Prepare an income statement for external users.

LabelsAddLessManufacturing overheadSelling expensesAmount DescriptionsBeginning work in processCommissionsCost of goods manufacturedCost of goods soldDepreciation, factory equipmentDirect materialsDirect laborEnding work in processGeneral administration expenseGross marginIndirect laborOperating incomeOperating lossRent, factory buildingSalesSales supervisors salaryTotal cost of productUtilities, factory

1. Prepare a statement of cost of goods manufactured. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your statement. If an amount is negative, first enter a minus (-) sign.

Score: 21/107

W. W. Phillips Company

Statement of Cost of Goods Manufactured

For Last Year

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3. Prepare an income statement for external users. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your statement.

Score: 30/79

W. W. Phillips Company

Income Statement

For Last Year

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