The following information is available for Lowry Company.

Instructions
(a) Compute cost of goods manufactured.
(b) Prepare an income statement through gross profit.
(c) Show the presentation of the ending inventories on the December 31, 2011 balance sheet.
(d) How would the income statement and balance sheet of a merchandising company be different from Lowry's financialstatements?

Transcribed Image Text:

January 1, 2011 2011 December 31, 2011 Raw materials inventory Work in process inventory Finished goods inventory Materials purchased Direct labor Manufacturing overhead Sales $21,000 13,500 27,000 30,000 17,200 21,000 $150,000 200,000 180,000 900,000