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    Greenville Products Inc: Prepare a schedule of Costs of Good

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    Your schedule and statement must be in proper form - this means they should look like they would in an annual report - and not in a spread sheet or a work sheet. Individual overheads should be listed rather than just a total being given.

    Greenville Products Inc. is a manufacturing firm. The company's inventory balances were as follows at the beginning and end of the year:

    Beginning Balance Ending Balance
    Raw Materials 21,000 24,000
    Work in Progress 40,000 22,000
    Finished Goods 26,000 41,000

    The following transactions were recorded for the year:

    â?¢ Raw materials were purchased, $300,000.
    â?¢ Raw materials were requisitioned for use in production, $297,000 $(281,000 direct and $16,000 indirect).
    â?¢ The following employee costs were incurred: direct labor, $399,000; indirect labor, $62,000; and administrative salaries, $176,000.
    â?¢ Selling costs, $165,000.
    â?¢ Factory utility costs, $19,000.
    â?¢ Depreciation for the year was $143,000 of which $137,000 is related to factory operations and $6,000 is related to selling, general, and administrative activities.
    â?¢ Sales for the year totaled $1,293,000.


    a. Prepare a schedule of cost of goods manufactured in good form.

    b. Prepare an income statement for the year in good form.

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    Solution Preview

    I have computed the needed amounts in Excel (attached). Please click in cells to ...

    Solution Summary

    I have computed the needed amounts in Excel (attached). Please click in cells to see computation. I have then created a good form schedule for cost of goods manufactured and the Income Statement (with a reference citing the format). I have also copied the statements into word so they "look" like an annual report and not a spreadsheet.