Assume information pertaining to Callaway Golf Company for April 2009 follows.

Sales …………………………………………..        $200,000

Purchases Raw materials ……………………..37,000

Manufacturing supplies ……………………........  800

Office supplies ………………………….………..       500

Salaries (including fringe benefits)

Administrative ……………………………….....     6,000

Production supervisors ………………….. ......3,600

Sales ……………………………………………         15,000

Depreciation

Plant and machinery ……………………..        8,000

Office and office equipment ………….....    4,000

Utilities

Plant ……………………………….........                 5,250

Office ………………………………..........                  890

Inventories .................................................................April 1......................April 30

Raw Materials .............................................................$3,000........................$4,000

Manufacturing Supplies ............................................$1,000........................  $1,300

Office Supplies .............................................................   $900............................$600

Work-in-Process ..........................................................$2,000........................$2,500

Finished Goods ...........................................................$8,000.........................$9,200

Additional information follows:

Manufacturing overhead is applied to product; at 85 percent of direct labor dollars.

Employee base wages are $12 per hour.

Employee fringe benefits amount to 40 percent of the base wage rate. They are classified as manufacturing overhead.

During April, production employees worked 5,600 hours, including 4,800 regular hours and 200 overtime hours spent working on products.

There were 600 indirect labor hours. Employees are paid a 50 percent overtime premium. Any overtime premium is treated as manufacturing overhead.

Required:

Prepare a statement of cost of goods manufactured and an income statement for April.

Answer rating: 100% (QA)

a The required statements should be prepared as follows C Golf Company State... View the full answer