W.W. Philips Company produced 4000 leather recliners during the year. These recliners sell for $400 each. Philips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Philips accounting records provide the following information.

1. Purchases of raw materials-------------------------------------------------------------------------------------------$320,000

2. Beginning materials inventory-----------------------------------------------------------------------------------------46,800

3. Ending materials inventory------------------------------------------------------------------------------------------- 66,800

4. Direct labor----------------------------------------------------------------------------------------------------------------200,000

5. Indirect labor-------------------------------------------------------------------------------------------------------------- 40,000

6. Rent, factory building------------------------------------------------------------------------------------------------------- 42,000

7. Depreciation, factory equipment--------------------------------------------------------------------------------------- 60,000

8. Utilities, factory------------------------------------------------------------------------------------------------------------- 11,900

9. Salary, Sales supervisor ------------------------------------------------------------------------------------------------- 90,000

10. Commission, salespersons----------------------------------------------------------------------------------------------180,000

11. General Administration--------------------------------------------------------------------------------------------------- 300,000

12. Beginning work in place inventory----------------------------------------------------------------------------------------- 13040

13. Ending work in place inventory------------------------------------------------------------------------------------------- 14,940

14. Beginning finished goods inventory------------------------------------------------------------------------------------- 80,000

15. Ending finished goods inventory----------------------------------------------------------------------------------------- 114,100

1. Prepare a statement of cost of goods manufactured. Refer to the last of labels and amount descriptions for the exact wording of text items within your statement. If the amount is a negative first enter minus( - ) sign.

W.W. Philips Company Statement of Cost of goods manufactured for last year

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2. Compute the Average cost of producing one unit of product in a year.

3. Prepare an income Statement for external users . Refer to the list of labels and amount descriptions for the exact wording of text items within your statement.

W. W. Philips income Statement for last year

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Refer to the list below for the exact wording of labels or an amount of descriptions within your statement.

labels; Less, Add, manufactured Overhead, Selling Expenses.

Amount Descriptions:

beginning work in process

Commissions

Cost of goods manufactured

Cost of goods sold etc.