Classify the costs listed in Alternate problem A as either product costs or period costs. Presley Manufacturing
Question:
Classify the costs listed in Alternate problem A as either product costs or period costs.
Presley Manufacturing Company is a producer of music compact discs (CDs) and tapes. The following account balances are for the year ended 2009 December 31
Administrative expenses | $60,000 |
Depreciation expense – Manufacturing equipment | 50,000 |
Direct labor | 468,000 |
Manufacturing supplies expense | 40,000 |
Indirect labor | 36,000 |
Beginning inventories, 2009 January 1: | |
Direct materials | 14,000 |
Work in process | 20,000 |
Finished goods | 128,000 |
Ending inventories, 2009 December 31 | |
Direct materials | 44,000 |
Work in process | 56,000 |
Finished goods | 92,000 |
Direct materials purchases | 216,000 |
Rent expense – Factory | 28,000 |
Sales | 1,400,000 |
Selling expense | 72,000 |
Other manufacturing overhead | 126,000 |
a. Prepare a statement of cost of goods manufactured for Presley Manufacturing Company for 2009.
b. Prepare an income statement for the year ended 2009 December 31.
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng