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Eccles Company Cost of Goods Sold

Using the following cost and inventory data for the just completed year for Eccles Company to:

1. Prepare a schedule of cost of good manufactured.
2. Prepare the cost of goods sold section of the company's income statement for
the year.

Costs incurred:
Advertising expense $100,000
Direct labor cost 90,000
Purchases of raw materials 132,000
Rent, factory building 80,000
Indirect labor 56,300
Sales commissions 35,000
Utilities, factory 9,000
Maintenance, factory equipment 24,000
Supplies, factory 700
Depreciation, office equipment 8,000
Depreciation, factory equipment 40,000

Beginning End
of year of year
Inventories:
Raw materials $ 8,000 $10,000
Work in process 5,000 20,000
Finished goods 70,000 25,000

Solution Preview

Using the following cost and inventory data for the just completed year for Eccles Company to:

1. Prepare a schedule of cost of good manufactured.
2. Prepare the cost of goods sold section of the company's ...

Solution Summary

Reponse explains the steps to prepare cost of goods sold

$2.19