Consider the following information for Blue Water Equipment, Inc., a manufacturer of sailboat rigging, blocks, and cordage.
Question:
Consider the following information for Blue Water Equipment, Inc., a manufacturer of sailboat rigging, blocks, and cordage.
Advertising expenses ...............$ 111,000
Depreciation expense—admin. office .......... 88,000
Depreciation expense—plant and equip. ......... 299,000
Depreciation expense—delivery trucks ........ 55,000
Direct materials inventory, beginning .......... 22,000
Direct materials inventory, ending .......... 16,000
Direct materials purchases ............. 348,000
Direct labor ..................... 455,000
Indirect labor ..................... 329,000
Finished goods inventory, beginning ......... 66,000
Finished goods inventory, ending .......... 42,000
Insurance on plant .................... 44,000
Heat and light for plant .............. 23,000
Repairs on plant building ............... 34,000
Supervisor’s salary—plant ............. 85,000
Supplies—plant ................. 118,000
Supplies—administrative office ............ 42,000
Work-in-process inventory, beginning ........ 14,000
Work-in-process inventory, ending .......... 11,000
Sales representatives’ salaries ............ 216,000
Sales revenue ...................2,312,000
Required
Prepare a statement of cost of goods manufactured and an income statement for Blue Water Equipment, Inc. for the year ended December 31, 2010.
Step by Step Answer:
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins