The following information has been extracted from the books of Lame Company for the year ended December
Question:
The following information has been extracted from the books of
Lame Company for the year ended December 31, 2018:
January 1, 2018 December 31, 2018
Direct Materials $20,000 $19,000
Work-in-Process 65,000 57,000
Finished Goods 32,000 16,000
Sales, Net - - - - - - - - - - $425,000
Materials Purchases, Net - - - 160,000
Direct Labor - - - - - - - - - 65,000
Indirect labor - - - - - - - - 40,000
Selling Expense - - - - - - - 60,000
Factory Rent - - - - - - - - - 19,000
Office Rent - - - - - - - - - 16,000
Depreciation, Factory Equipment 25,000
Depreciation, Office Equipment 8,000
Factory Utilities - - - - - - 19,000
Office Utilities - - - - - - - 3,800
Factory Supplies - - - - - - - 4,200
Office Supplies - - - - - - - 2,000
Prepare the income statement of the Lame Company for the year ended December 31, 2018. You must use the single schedule, multi-step method presented in class and used on the spreadsheet assignment (not the income by function method).
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach