Share
Explore BrainMass

Prepare a schedule of cost of goods manufactured & prepare an income statement.

Please see the attached file for the fully formatted problems.

Attachments

Solution Preview

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 ...

$2.19