Case 1 The following information has been taken from SITARA Corporation accounting records for the past year
Question:
Case 1
The following information has been taken from SITARA Corporation accounting records for the past year (2019):
Description | In dollar |
Selling expenses | 222.000.000 |
Raw materials inventory, January 1, 2019 | 2.244.000.000 |
Raw materials inventory, December 31, 2019 | 200.000.000 |
Purchases of raw material | 1.800.000.000 |
Administrative expenses | 468.000.000 |
Indirect materials | 100.000.000 |
Indirect labor | 152.000.000 |
Leasing costs-factory | 620.000.000 |
Manufacturing machinery depreciation | 340.000.000 |
Manufacturing overhead - others | 66.000.000 |
Work in process inventory, January 1, 2019 | 234.000.000 |
Work in process inventory, December 31, 2019 | 220.000.000 |
Finished goods inventory, January 1, 2019 | 700.000.000 |
Finished goods inventory, December 31, 2019 | 567.000.000 |
During December 2019, the following sales activities recorded 24,000 units produced and units sold 200,000 units and is sold at a price of @ $65,000.
Direct labor costs per product $ 45,000.
Management wants this data to be structured in a better format so that financial reports can be prepared for this year:
The Question are:
1. Please make or prepate the schedule of cost of goods manufactured (COGM). please mention how to get the COGM and what needs to be included.
2. Calculate the cost of good sold. (COGS)
3. Prepare an income statement. Explain the point
Note: The facts or information presented are sufficient, the answer is complete and detailed. Thank you!
Fundamental Accounting Principles Volume 1
ISBN: 9781259259807
15th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann