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Introductory cost accounting

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Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO6]
The following data from the just completed year are taken from the accounting records of Eccles Company:

Sales ......................................................................................... $643,000
Direct labor cost ........................................................................... $90,000
Raw material purchases .............................................................. $132,000
Selling expenses ......................................................................... $100,000
Administrative expenses ............................................................... $43,000
Manufacturing overhead applied to work in process....................... $210,000
Actual manufacturing overhead costs .......................................... $220,000
Inventories:
Beginning of
Year
End of Year
Raw materials ............................................... $8,000 $10,000
Work in process ............................................ $5,000 $20,000
Finished goods ............................................. $70,000 $25,000

Ending raw material inventory = $8,000;
Ending work in process inventory = $16,000

Required:
1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.
2. Prepare a schedule of cost of goods sold.
3. Prepare an income statement.

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Solution Summary

Introductory cost accounting is examined. The cost of goods manufactured and the cost of goods sold are determined.

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