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Managerial Accounting

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Part A

In December, Vollick Corporation had sales of $245,000, selling expenses of $23,000, and administrative expenses of $26,000. The cost of goods manufactured was $190,000. The beginning balance in the finished goods inventory account was $59,000 and the ending balance was $56,000.

Required:
Prepare an Income Statement in good form for December. Be sure to use a proper heading.

Part B

The following data were taken from the cost records of Morrey Company for last year:

Depreciation, factory $60,000
Indirect labor $100,000
Utilities, factory $40,000
Insurance, factory $10,000
Lubricants for machines $15,000
Direct labor $200,000
Purchases of raw materials $150,000

Inventories at the beginning and at the end of the year were as follows:

Beginning Ending
Raw materials $10,000 $20,000
Work in process $25,000 $5,000
Finished goods $30,000 $50,000

Required:
Prepare a schedule of cost of goods manufactured in good form. Be sure to use a proper heading.

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Solution Summary

The solution explains how to prepare an income statement and a statement of cost of goods manufactured

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Part A

In December, Vollick Corporation had sales of $245,000, selling expenses of $23,000, and administrative expenses of $26,000. The cost of goods manufactured was $190,000. The beginning balance in the finished goods inventory account was $59,000 and the ending balance was $56,000.

Required:
Prepare an Income Statement in good form for December. Be sure to use a proper heading.

Vollick Corporation
Income Statement
For December
Sales 245,000
Cost of Goods Sold
Beginning Finished Goods ...

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