The following information is available for Sassafras Company:

Instructions
(a) Calculate cost of goods manufactured.
(b) Prepare an income statement through gross profit.
(c) Show the presentation of the ending inventories on the December 31, 2012, balance sheet.
(d) How would the income statement and balance sheet of a merchandising company be different from Sassafras's financial statements?

Transcribed Image Text:

January 1,2012 $22,000 18,500 27,000 December 31, 2012 $30,000 17,200 31,000 2012 Raw materials inventory Work in process inventory Finished goods inventory Materials purchased Direct labour Manufacturing overhead Sales 170,000 200,000 183,000 920,000