Consider the following account balance for ABC manufacturing company in the year 2004. Beginning balance End balance Direct material inventory $22,000 $26,000 WIP inventory 21,000 20,000 Finished goods inventory 18,000 23,000 Purchase of direct material 75,000 Direct labor cost 25,000 Indirect labor cost 15,000 Plant insurance 4,000 Insurance- administrative 5,000 Depreciation - plant building and equipment 9,000 Depreciation - administrative building 3,000 Repair and maintenance – factory equipment 4,000 Marketing, distribution and customer service cost 93,000 General and administrative cost 29,000 

Required 

a) Calculate cost of direct material used 

b) Calculate cost of goods manufactured 

c) Calculate cost of goods sold 

d) If revenue for the year is $300,000, prepare an income statement for the Company.

Answer rating: 100% (QA)

Schedule of Cost of Goods manufactured Direct Material Beginning raw materials inventory 220... View the full answer