Canton Ltd. manufactures handbags. Selected account balances for the year ended December 31, 2012, are presented below:
Amortization-factory......................................... $ 28,500
Beginning direct materials inventory.......................... 13,200
Beginning finished goods inventory...........................65,800
Beginning work-in-process inventory......................... 24,800
Direct labor...................................................... 88,200
Direct material purchases....................................... 98,200
Ending direct materials inventory..............................16,200
Ending finished goods inventory..............................52,500
Ending work-in-process inventory..............................35,200
Factory insurance...................................................8,400
Factory maintenance..............................................25,300
Factory utilities....................................................14,500
General and administrative expenses...........................62,800
Indirect labor.....................................................19,500
Indirect materials...................................................7,800
Sales...............................................................482,000
Selling expenses...................................................70,400
REQUIRED
A. Prepare a schedule of cost of goods manufactured.
B. Calculate the prime cost and conversion cost.
C. Prepare a schedule of cost of goods sold.
D. Prepare a single-step income statement for Canton Ltd. for the year.