Prepare a schedule of cost of goods manufactured & prepare an income statement.
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Various cost and sales data for Medco, Inc, are given below for the just completed year:
Type of cost
Inc. Statement accounts
Purchases of raw materials $90,000 Direct materials
Raw materials inventory, beginning $10,000 Direct materials
Raw materials inventory, ending $17,000 Direct materials
Depreciation, factory $42,000 Manufact O/H
Insurance, factory $5,000 Manufact O/H
Direct labor $60,000 Direct labor
Maintenance, factory $30,000 Manufact O/H
Administrative expenses $70,000 Selling & Admin
Sales $450,000 Revenues
Utilities, factory $27,000 Manufact O/H
Supplies, factory $1,000 Manufact O/H
Selling expenses $80,000 Selling & Admin
Indirect labor $65,000 Manufact O/H
Work in process inventory, beginning $7,000 Manufacturing
Work in process inventory, ending $30,000 Manufacturing
Finished goods inventory, beginning $10,000 Manufacturing
Finished goods inventory, ending $40,000 Manufacturing
Sales is listed on our Income Statement. From this, we have to subtract COGS (which is found by
preparing a cost of goods manufactured/ cost of goods sold schedule) and selling and ...
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