SuSu Manufacturing Company makes water heaters. Selected account balances on December 31, 20X1, the end of its fiscal year, are given below. Data about the beginning and ending inventories are also given.

INSTRUCTIONS
1. Prepare a statement of cost of goods manufactured for 20X1.
2. Prepare an income statement for 20X1.

Analyze: For every dollar earned in net sales, what portion was spent on manufacturing costs?

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Accounts Sales Sales Returns and Allowances Materials Purchases Direct Labor Indirect Labor Payroll Taxes-Factory Utilities-Factory Repairs and Maintenance-Factory Indirect Materials and Supplies Depreciation Factory Building Depreciation Factory Equipment Insurance-Factory Balances $1,106,500 6,500 215,000 250,000 40,000 29,000 20,500 5,000 5,000 6,000 5,000 20,000 Accounts Property Taxes-Factory Sales Salaries Expense Payroll Taxes Expense-Selling Delivery Expense Advertising Expense Miscellaneous Selling Expenses Officers' Salaries Expense Office Salaries Expense Payroll Taxes Expense-Administrative Other Administrative Expenses Income Tax Expense Balances 9,000 150,000 15,000 9,000 10,000 26,000 180,000 50,000 23,000 4,000 4,095