Question

Following is the trial balance of Rashid Products Company, Inc., as of December 31 of this year.


You are given the following information for the adjustments:
a.– f. Year- end inventories: raw materials, $ 46,300; work-in-process, $ 68,740; finished goods, $ 75,175.
g. Allowance for Doubtful Accounts to be increased by $ 890 [debit General Expenses].
h. Estimated depreciation of factory machinery, $ 11,625.
i. A study of the company’s insurance policies shows that $ 1,430 of factory insurance expired during the year.
j. Accrued direct labor, $ 350; accrued indirect labor, $ 180; accrued sales commissions, $ 190 ( credit Wages and Commissions Payable).
k. Additional income tax, $ 1,429.

Required
1. Prepare a work sheet.
2. Prepare a statement of cost of goods manufactured.
3. Prepare an incomestatement.


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  • CreatedOctober 21, 2014
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