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Manufacturing enterprise-Income Statement

Reddy Company provided the following information regarding its operations for the month ending September 30, 2010:

Administrative cost $15,000
Depreciation on factory equipment 6,000
Indirect materials 1,000
marketing and distribution cost 12,000
salaries for factory supervisor 10,000
wage for production worker 13,000
raw material used 19,000
sales revenue 98,000
selling cost 9,000
utilities for production facilities 4,000

Number of units produced 20,000
Number of units sold 15,000

1) Compute the firm's total manufacturing overhead cost.
2) Calculate total product costs, ending inventory, and cost of goods sold
3) Prepare an income statement for the month ending September 30, 2010.

Solution Summary

calculation of manufacturing overhead cost
Cost of goods sold statement
Income statement