Andragon Manufacturing, a small private company, has recently hired you as their accounting department supervisor. You have been told that your role will also include some of the day-to-day accounting. John Edwards, the company's CEO and principal shareholder, has told you during your hiring interview that his strategy is to expand Andragon's operations and that he is seriously thinking about taking the company public in the near future. As such, he has instructed the company's human resources manager to hire several management trainees to expand Andragon's management force.
As a result of poor system maintenance and data backup procedures prior to your arrival at ANDRAGON Manufacturing, a computer virus had damaged several important files within the company's accounting files. As a result, the company's statement of cost of goods manufactured (COGM) needs to be re-created based on the following end-of-the-year information attached
1. Using a spreadsheet program like Excel, re-construct the company's statement of cost of goods manufactured (COGM).
2. As part of your agenda for the day, you are to meet with the CEO of the company to discuss the company's net income. Once the COGM is derived, create a simple income statement to derive the company's operating income/loss.
The solution explains how to prepare a cost of goods manufactured statement.