Following is the trial balance of Stopa Manufacturing Corporation as
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.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help