Australian Aluminum Company. a manufacturer of recyclable soft-drink cans, had the following inventory balances at the beginning and end of the current year:

During the year, the company purchased $600,000 of raw material and spent $960,000 on direct labour. Manufacturing overhead costs were as follows:
Indirect material........................................$12,000
Indirect labour............................................22,000
Depreciation on plant and equipment...............110,000
Utilities....................................................23,000
Other......................................................35,000
Sales revenue was $2,652,000 for the year. Selling and administrative expenses for the year amount to $264,000. The firm's tax rate is 40 per cent.
Required
1. Prepare a schedule of cost of goods manufactured.
2. Prepare a schedule of cost of goods sold.
3. Prepare an income statement.

Transcribed Image Text:

Inventory account Raw material Work in process Finished goods 31 December $168 000 1 January $144 000 288 000 276 000 360 000 396 000