Purchase Solution

Income Statement

Not what you're looking for?

Ask Custom Question

Acme Co. makes widgets, during 2005 the company sales were 600,000. Costs in 2004:

Raw materials 70,000
Direct labor 180,000
Indirect labor 15,000
Equipment rent 25,000
Factory utilities 10,000
Misc factory supplies 17,000
building depreciation 15,000
property taxes 5,000
production salaries 75,000
administrative salaries 120,000
Misc selling and admin costs 29,000

Inventory balances at beginning and end of year:
raw materials 21,000 (beginning) - 17,000 (end)
work in progress 30,000 (beginning) - 35,000 (end)
finished goods 45,000 (beginning) - 47,000 (end)

60% of factory building was devoted to manufacturing, so 60% of depreciation and taxes is treated as factory cost. Company was subject to income tax rate of 30%

Compute the following:
Raw materials consumed
Factory overhead incurred
Cost of furniture manufactured
Cost of furniture sold
Selling and admin expenses incurred

Also prepare an Income Statement for Acme Co. for 2004.

Purchase this Solution
Solution Summary

Income Statement is created.

Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Diff. between financial statement income & taxable income

    The following are some of the differences between financial statement income and taxable income  Financial statement income is the income as reflected in the Income statement i.e. the Net Income and taxable income is the income which is calculated

  • Income Statement, the Balance Sheet, and the Statement of Cash

    521777 Income Statement, the Balance Sheet, and the Statement of Cash Discuss the relationship between the income statement, balance sheet, and statement of cash.

  • Information is presented on the Income Statement

    348233 Information is presented on the Income Statement What information is presented on the Income Statement? Why is the statement presented in the order in which it is? Who will tend to focus more on the Income Statement vs the other reports?

  • Importance of the Income Statement

    298569 Importance of the Income Statement What is the importance of the Income Statement? What are its major limitations? Explain with an example. Importance of the Income Statement What is the importance of the Income Statement?

  • Cash flow statement vs income statement

    225200 Cash flow statement vs income statement What makes the cash flow statement more useful in these respects than the income statement? What makes the cash flow statement more useful in these respects than the income statement?

  • Your friend comments, 'I just ignore the income statement wh

    The income statement will also show where the expenses are. I would use the income statement to compare it to the previous income statement.

  • Accounting - Evaluating an income statement

    An income statement is also known as a revenue statement, earnings statement, operating statement, or Profit and Loss (P&L) statement. The income statement explains how a company's revenues are transformed into net income.

  • Creating an Income Statement

    375022 Income Statement Assignment The items below are from an income statement, but are not in the final order that they should appear in the Income Statement. Take this information and construct a complete Income Statement from it.

  • Preparing Income Statement and GAAP

    Note: Please open attached file for an income statement sample. This solution clearly highlights the components of an income statement and includes an attached sample income statement.

  • Proforma Income Statement Question - Silver Company

    Pro-Forma Income Statement Silver Company has asked you to prepare a pro-forma income statement for the coming year.

View More Related Solutions