Business managers frequently operate in a world where data are not readily available. Two independent situations follow:

Required
A. Based on the information given above, reconstruct the accounting data for each company.
B. Prepare an income statement for eachcompany.

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Company 2 $20,000 13,000 Company1 $10,000 5,000 12,000 Direct materials used Direct labor Manufacturing overhead Total manufacturing costs Beginning work in process Ending work in process Cost of goods manufactured Sales Beginning finished goods inventony Cost of goods manufactured Goods available for sale Ending finished goods inventory Cost of goods sold Gross margin Selling and administrative expenses Net Income 35,000 15,000 17,500 6,000 $23,000 $35,000 10,000 $50,000 12,000 15,000 26,000 9,500 $17,000