Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Herrmann Corporation is a manufacturer of saw blades. The blades are sold to machine and equipment dealers, and marketing is handled via a network of

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Herrmann Corporation is a manufacturer of saw blades. The blades are sold to machine and equipment dealers, and marketing is handled via a network of regionalized manufacturer representatives. The only selling expenses pertain to commissions paid to the manufacturer representatives. The commissions are 6% of total sales. The following information pertains to operations during the calendar year 20X8. Sales Administrative salaries Direct labor Indirect labor Total depreciation Total utilities Interest expense Other factory overhead $ 8,645,661 525,654 2,039,804 739,233 186,180 156,000 40,500 46,472 Of the total depreciation, 80% relates to manufacturing and 20% relates to general and administrative costs. Of the total utilities, 70% relates to manufacturing and 30% relates to general and administrative costs. Income taxes are 30% of income before taxes. Following is information about various inventory components Beginning balance Beginning balance Purchases Ending balance Raw Materials 465,054 2,600,799 487,399 .65.954 Indirect Materials 33,048 192,300 43,029 3 948 Work in Process 728,206 $ n/a 566,442 /2000 Finished Goods 745,598 n/a 932,105 de year ending December 31, 20x8. a) Use the above information to construct a schedule of cost of goods manufactured for the year ending December 31, 20X8. b) Use the above information to construct a schedule of cost of goods sold for the year ending December 31, 20X8. c) Use the above information to construct an income statement for the year ending December 31, 20X8. Worksheet 6 Google 0 N Assignment C e nk accounting ch https://unch.mrooms.net/mod/assign/view.php?id=1317668 No results Options page nonspen HERRMANN CORPORATION SCHEDULE OF COST OF GOODS MANUFACTURED For the Year Ending December 31, 20x8 HERRMANN CORPORATION 0 Type here to search * e hp HERRMANN CORPORATION SCHEDULE OF COST OF GOODS SOLD For the Year Ending December 31, 20X8 Beginning finished goods inventory, Jan. 1 Plus: Cost of goods manufactured Goods available for sale Less: Ending finished goods inventory, Dec. 31 Cost of goods sold HERRMANN CORPORATION Income Statement For the Year Ending December 31, 20X8 Sales Cost of goods sold Gross profit Operating Expenses Selling General & administrative* Interest expense Income before income taxes Income taxes Net income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

9781285586618

Students also viewed these Accounting questions

Question

bj

Answered: 1 week ago