Consider the following account balances (in thousands) for the McKnight Company: (Click the icon to view...

  

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Consider the following account balances (in thousands) for the McKnight Company: (Click the icon to view the account balances.) Requirements 1. Prepare a schedule for the cost of goods manufactured for 2017. 2. Revenues for 2017 were $270 million. Prepare the income statement for 2017. Requirement 1. Prepare a schedule for the cost of goods manufactured for 2017. Begin by preparing the schedule of cost of goods manufactured (in thousands). Start with the direct materials and labor costs, then indirect manufacturing costs, and complete the schedule by calculating cost of goods manufactured. McKnight Company Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2017 (in thousands) Direct materials: Direct materials used Direct manufacturing labor Beginning of End of 2017 McKnight Company 2017 Direct materials inventory 25.000 28,000 Work-in-process inventory 23,000 22,000 Finished-goods inventory 12,000 24,000 Purchases of direct materials 74,000 Direct manufacturing labor 20,000 Indirect manufacturing labor 18,000 Plant insurance 9,000 Depreciation-plant, building, and equipment 14,000 Repairs and maintenance-plant 5,000 Marketing, distribution, and customer-service costs 95,000 General and administrative costs 29,000 Consider the following account balances (in thousands) for the McKnight Company: (Click the icon to view the account balances.) Requirements 1. Prepare a schedule for the cost of goods manufactured for 2017. 2. Revenues for 2017 were $270 million. Prepare the income statement for 2017. Requirement 1. Prepare a schedule for the cost of goods manufactured for 2017. Begin by preparing the schedule of cost of goods manufactured (in thousands). Start with the direct materials and labor costs, then indirect manufacturing costs, and complete the schedule by calculating cost of goods manufactured. McKnight Company Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2017 (in thousands) Direct materials: Direct materials used Direct manufacturing labor Beginning of End of 2017 McKnight Company 2017 Direct materials inventory 25.000 28,000 Work-in-process inventory 23,000 22,000 Finished-goods inventory 12,000 24,000 Purchases of direct materials 74,000 Direct manufacturing labor 20,000 Indirect manufacturing labor 18,000 Plant insurance 9,000 Depreciation-plant, building, and equipment 14,000 Repairs and maintenance-plant 5,000 Marketing, distribution, and customer-service costs 95,000 General and administrative costs 29,000

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