The following information was taken from the accounting records of Mitchell Company for last year:

Management wants to organize these data into a better format so that financial statements can be prepared for the year.
Required:
1. Prepare a schedule of cost of goods manufactured as in Exhibit 2€“4.
2. Compute the cost of goods sold.
3. Using data as needed from (1) and (2) above, prepare an income statement.
4. Assuming production of finished and semi-finished goods amounted to 412,500 units for the past year calculate the cost components of the ending finished goods inventory of 55,176 units.

Transcribed Image Text:

S 140000 Selling expenses Raw materials inventory, January 1 Raw materials inventory, December 31 50000 Insurance, factory Maintenance, factory. Work in process inventory, January 1 .