Week 1

The following data refer to Nani's Fashions for the current year:

Sales Revenues

Work in process inventory, 31 December Work in process inventory, 1 January Selling and administrative expenses Income tax expense

Purchase of raw materials

Raw materials inventory, 31 December Raw material inventory. 1 January

Direct labour

Electricity: plant

Depreciation plant and equipment Finished goods inventory, 31 December Finished goods inventory, 1 January Indirect material

Indirect labour

Other manufacturing overhead

$475,000 15,000 20,000 75,000 45,000 90,000 12,500 20,000 100,000 20,000 30,000 25,000 10,000 5,000 7,500 40,000

Required:

a) Prepare the schedule of cost of goods manufactured for Nani's fashion. (3 marks)

b) Prepare the schedule of cost of goods sold for Nani's Fashions and explain the information

provided by the schedule of cost of goods sold. (4 marks)

c) Prepare an income statement for the current year