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    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 ...