Tent Manufacturing Company makes camping equipment. Selected account balances (listed alphabetically) for this firm on December 31, 2019, the end of its fiscal year, are given below. Data about the beginning and ending inventories is also shown.

INSTRUCTIONS
1. Prepare a statement of cost of goods manufactured for 2019.
2. Prepare an income statement for 2019.

Accounts                                                                    Balances
Depreciation€”Factory Assets........................................$ 9,000
Depreciation Expense€”Office Assets...............................3,000
Direct Labor....................................................................200,000
Freight In..........................................................................10,000
Income Tax Expense.......................................................74,750
Indirect Labor...................................................................18,000
Indirect Materials and Supplies..........................................7,000
Insurance€”Factory..........................................................12,000
Materials Purchases......................................................300,000
Office Salaries Expense...................................................50,000
Officers€™ Salaries Expense.............................................180,000
Other Administrative Expenses.........................................1,800
Other Selling Expenses...................................................12,000
Payroll Taxes Expense€”Administration..........................18,000
Payroll Taxes Expense€”Factory.....................................20,000
Payroll Taxes Expense€”Sales Salaries............................9,000
Property Taxes€”Office......................................................2,000
Property Taxes€”Factory...................................................8,000
Purchases Returns and Allowances..................................4,000
Repairs and Maintenance€”Factory..................................3,200
Repairs and Maintenance€”Office.....................................1,000
Sales...........................................................................1,255,000
Sales Returns and Allowances..........................................5,000
Sales Salaries Expense...................................................90,000

Analyze: What percentage of cost of goods manufactured did the company spend on raw materials? On direct labor costs? On overhead costs?

Transcribed Image Text:

Inventory Data Finished Goods Inventory Work in Process Inventory Raw Materials Inventory Jan. 1, 2019 Dec. 31, 2019 $29,000 30,000 $32,000 25,000 21,000 20,000