Problem 2.35 Cost of Goods Manufactured, Income Statement Objective 3, 4 Orman Company produces neon-colored covers...

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Problem 2.35 Cost of Goods Manufactured, Income Statement Objective 3, 4 Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman report the following: Work-in-process inventory, January 1 Work-in-process inventory, December 31 Finished goods inventory, January 1 Finished goods inventory, December 31 Direct materials inventory, January 1 $ 13,250 28,250 113,000 85,000 3,450 Direct materials inventory, December 31 2,700 Direct materials purchased 183,750 Direct labor 138,000 Plant depreciation 19,500 Salary, production supervisor 47,000 Indirect labor Utilities, factory Sales commissions 68,300 15,700 42,000 Salary, sales supervisor 75,000 Depreciation, factory equipment 32,000 Administrative expenses 168,000 Supplies (40% used in the factory, 60% used in the sales office) 18,000 Advertising expense 43,600 Last year, Orman produced 89,000 units and sold 90,500 units at $10.50 per unit. Required: 1. Prepare a statement of cost of goods manufactured. Answer 2. Prepare an absorption-costing income statement. Answer + Problem 2.35 Cost of Goods Manufactured, Income Statement Objective 3, 4 Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman report the following: Work-in-process inventory, January 1 Work-in-process inventory, December 31 Finished goods inventory, January 1 Finished goods inventory, December 31 Direct materials inventory, January 1 $ 13,250 28,250 113,000 85,000 3,450 Direct materials inventory, December 31 2,700 Direct materials purchased 183,750 Direct labor 138,000 Plant depreciation 19,500 Salary, production supervisor 47,000 Indirect labor Utilities, factory Sales commissions 68,300 15,700 42,000 Salary, sales supervisor 75,000 Depreciation, factory equipment 32,000 Administrative expenses 168,000 Supplies (40% used in the factory, 60% used in the sales office) 18,000 Advertising expense 43,600 Last year, Orman produced 89,000 units and sold 90,500 units at $10.50 per unit. Required: 1. Prepare a statement of cost of goods manufactured. Answer 2. Prepare an absorption-costing income statement. Answer +