What is the solution for both in good form?
Spencer Company is a manufacturer of sports drinks. During the past calendar year, Spencer Company produced 499, 499 cases of 1-liter bottles of sports drinks. Spencer sells each case of 1-liter bottles for $24.25! Spencer's accountants provided the following information. Accum. depr.-factory equipment $ 707, 000 Depreciation, headquarters $321, 123 Warehousing costs 97, 770 Purchases of direct materials 2, 959, 317 Finished goods inventory, Dec. 31 Work-in-process inventory, Jan. 1 540, 321 Direct materials inventory, Jan. 1 215, 375 Salary, sales supervisor 85, 999 Factory building 999, 900 Advertising 85, 999 Utilities, factory 129, 059 Land 3, 768, 550 Accounts Receivable 394, 500 Finished goods inventory, Jan 1 277, 550 materials inventory, Dec. 31 251, 735 Unearned Revenue Direct labor Insurance on factory 188, 750 2, 959, 317 540, 321 215, 375 999, 900 Advertising 129, 059 Land 394, 500 Property taxes on factory 101, 010 Indirect labor 481, 548 Supplies 143, 550 Prepaid Expenses 88, 888 Accounts Payable 333, 300 General administration 358, 070 Direct materials inventory, Dec. 31 251, 735 Unearned Revenue 217, 400 Direct labor 1, 654, 321 Work-in-process inventory, Dec. 31 570, 123 Insurance on factory 282, 900 Common Stock 2, 745, 000 Additional Info: At the end of the year, Spencer's accountants determined that were 133, 330 cases of sports drinks in finished goods inventory. Spencer Company uses straight-line depreciation. The factory building has an expected life of 45 years and a salvage value of $334, 935. Spencer's factory equipment has an expected life of 7 years and salvage value of $55, 000. The land was purchased 5 years ago and is expected to be used for a total of 40 years. The balance is accumulated depreciation-factory equipment is for the last 4 years to date. During the year, Spencer paid dividends in the amount of $15, 050. Spencer Company pays their salespeople a base salary of $23, 482 plus 3.45% of their individual sales. They currently have 11 salespeople and all eleven generated the total sales for the company. Warehousing costs are related to the finished products and are stored at a separate facility. At the beginning of the year, Spencer had 34, 559 cases of sports drinks in finished goods inventory. The accountants also determined that 38% of the supplies were used in the factory and 48% were used in the sales office. Required (round all numbers to the nearest dollar, if needed): 1) Prepare a cost of goods manufactured statement in good form. 2) Prepare an income statement in good form
