Question
You are the accountant of Seton Enterprises Ltd. You have obtained the following data from the companys accounting records for the year ended 30 June
You are the accountant of Seton Enterprises Ltd. You have obtained the following data from the companys accounting records for the year ended 30 June 2016:
Sales | 1,200,300 |
Inventories at 1 July 2015: | |
Raw materials | 75,600 |
Work in process | 53,800 |
Finished goods | 94,500 |
Inventories at 30 June 2016: | |
Raw materials | 72,300 |
Work in process | 51,400 |
Finished goods | 97,200 |
Direct labor | 114,000 |
Purchases of raw materials | 324,000 |
Selling expenses | 118,300 |
Factory overhead is applied at the rate of 240% of direct labor cost.
Required:
- Prepare the cost of goods manufactured statement for the year ended 30 June 2016.
- Show the presentation of the cost of sales calculation as it would appear on the companys income statement for the year ended 30 June 2016.
- Calculate the companys Gross profit for the year ended 30 June 2016.
Do not copy from Chegg, otherwise, I have to report the answer.
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