Tombert Company is a manufacturer of computers. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020. TOMBERT COMPANY Income Statement For the Month Ended October 31, 2020 Sales (net) $ 783,400 Less: Operating expenses Raw materials purchases $ 264,400 Direct labour cost 190,650 Advertising expense 89,850 Selling and administrative salaries 74,200 Rent on factory facilities 60,800 Depreciation on sales equipment 44,750 Depreciation on factory equipment 31,300 Indirect labour cost 28,300 Selling and administrative salaries 74,200 Rent on factory facilities 60,800 Depreciation on sales equipment 44,750 Depreciation on factory equipment 31,300 Indirect labour cost 28,300 Utilities expense 12.100 Insurance expense 8,650 805,000 Net Loss $(21,600) Prior to October 2020, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As his friend, he has asked you to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired the following additional information. 1. Inventory balances at the beginning and end of October were as follows: October 1 October 31 Raw materials $ 6,400 $ 29,850 Work in process 16,300 14,600 examining other manufacturing cost data, you have acquired the following additional information. 1. Inventory balances at the beginning and end of October were as follows: October 1 October 31 Raw materials $ 6,400 $ 29,850 Work in process 16,300 14,600 Finished goods 30,550 45,500 2. Only 72% of the utilities expense and 58% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Prepare a schedule of the cost of goods manufactured for October 2020. TOMBERT COMPANY Cost of Goods Manufactured Schedule For the Month Ended October 31, 2020 Raw Materials Inventory, October 1 $ Prepare a schedule of the cost of goods manufactured for October 2020. TOMBERT COMPANY Cost of Goods Manufactured Schedule For the Month Ended October 31, 2020 Raw Materials Inventory, October 1 $ $ > $ > > > > > > > > > > > $ > e Textbook and Media Prepare a correct income statement for October 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) TOMBERT COMPANY Income Statement Prepare a correct income statement for October 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) TOMBERT COMPANY Income Statement $ $ v: > $ e Textbook and Media
