Question

Following is the trial balance of Stopa Manufacturing Corporation as of December 31 of this year.


You are given the following information for the adjustments:
a.– f. Year- end inventories: raw materials, $ 28,750; work-in-process, $ 45,830; finished goods, $ 48,118.
g. Estimated depreciation of factory machinery, $ 7,980.
h. A study of the company’s insurance policies shows that $ 1,085 of factory insurance expired during the year.
i. Allowance for Doubtful Accounts to be increased by $ 543 (debit General Expenses).
j. Accrued direct labor, $ 252; accrued indirect labor, $ 84; accrued sales commissions, $ 98 ( credit Wages and Commissions Payable).
k. Additional income tax, $ 800.

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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