Terra Cotta Designs manufactures custom tiles. The following information relates to the fiscal year ending December 31,
Question:
Terra Cotta Designs manufactures custom tiles. The following information relates to the fiscal year ending December 31, 2011.
Beginning balance in Raw Material Inventory.......$ 400,000
Purchases of raw material...............1,000,000
Ending balance in Raw Material Inventory...........200,000
Beginning balance in Work in Process...........600,000
Ending balance in Work in Process............350,000
Direct labor cost....................2,100,000
Manufacturing overhead applied.............600,000
Beginning balance in Finished Goods...........700,000
Ending balance in Finished Goods............350,000
Sales.........................6,100,000
Selling expenses...................400,000
General and administrative expenses...........850,000
Required
a. Prepare a schedule of cost of goods manufactured. Assume that there are no indirect material costs.
b. Prepare an income statement for fiscal 2011.Ignore income taxes.
Step by Step Answer:
a Terra Cotta Designs Schedule of Cost of Goods Manufactured For the Year Ended December 31 2011 B...View the full answer
