Alhambra Aluminum Company, a manufacture of recyclable soda cans, had the following inventory balances at the beginning and the end of 20x1.

Inventory classifications January 1, 20x1 December 31, 20x1

Raw material $ 55,000  $ 75,000

Work in process 110, 000  125,000

Finished goods 160,000  155,000

During 20x1, the company purchased $ 240,000 of raw material and spent $ 420,000 for direct labor.

Manufacturing overhead costs were as follows:

Indirect material.......................................................................$ 12,000

Indirect labor............................................................................... 22,000

Depreciation on plant and equipment.......................................... 110,000

Utilities........................................................................................... 23,000

Others........................................................................................... 35,000

Sales revenue was $1,210,000 for the year. Selling and administrative expenses for the year amounted to $105,000. The firm's tax rate is 35percent.

Required:

1. Prepare a schedule of cost of goods manufactured.

2. Prepare a schedule of cost of goods sold.

3. Prepare an income statement.

Answer rating: 100% (QA)

1 Schedule of Cost of Goods Manufactured Raw Material Beginning Inventory 55000 Purchases 240000 Tot... View the full answer