Wang Company began operations on January 1, 2018, by issuing common stock for $70,000 cash. During 2018, Wang received $88,000 cash from revenue and incurred costs that required $65,000 of cash payments.

Prepare a GAAP-based income statement and balance sheet for Wang Company for 2018, for the below scenario:

Wang is a manufacturing company. The $65,000 was paid to purchase the following items:

(1) Paid $10,000 cash to purchase materials that were used to make products during the year.

(2) Paid $20,000 cash for wages of factory workers who made products during the year.

(3) Paid $5,000 cash for salaries of sales and administrative employees.

(4) Paid $30,000 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a three-year life and a $6,000 salvage value. The company uses straight-line depreciation.

(5) During 2018, Wang started and completed 2,000 units of product. The revenue was earned when Wang sold 1,500 units of product to its customers.

I am unable to determine the COGS on the Income Statement and the Finished Goods Inventory on the Balance Sheet. All the other answers are showing correct. Below is what I have worked out. Please help me determine what I did wrong.

Depreciation: 30000-6000=24000/3 = 8000 a year (overhead)

Product Cost: 10000 materials + 2000 labor + 8000 overhead = 20000

Cost per a unit: 20000/2000 units = 10.00 Sold units: 1500 * 10.00 = 15000

Unsold units: 500 * 10.00 = 5000

Income Staement Sales

Revenue 88,000

COGS I tried: -15,000 , 15000, 20000

Gross Margin

Administrative 5000

Total

Balance Sheet

ASSETS

Cash 93,000

Finished Goods Inventory I tried: 15,000 & 18,000

Manufacturing Equipment 30,000

Accumulated Depreciations (8,000)

Total Assets

EQUITY

Common Stock 70,000

Retained Earnings

Total Equity