COST OF GOODS MANUFACTURED, INCOME STATEMENT Jordan Company produces a chemical reagent used by medical laboratories....

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COST OF GOODS MANUFACTURED, INCOME STATEMENT Jordan Company produces a chemical reagent used by medical laboratories. For 2007, Jordan reported the following: Work-in-process inventory, January 1 $ 13,250 Work-in-process inventory, December 31 13,250 Finished goods inventory, January 1 (24,000 units) 170,000 Finished goods inventory, December 31 (12,000 units) 85,000 Direct materials inventory, January 1 15,600 Direct materials inventory, December 31 14,000 Direct materials used 120,000 Direct labor 72,000 Plant depreciation 9,500 Salary, production supervisor 45,000 Indirect labor 36,000 Depreciation, factory equipment $25,000 Administrative expenses 52,000 Supplies (half used in the factory, half used in the sales office) 4,000 Jordan produced 100,000 units during 2007 and sold 127,000 units at $6 per unit. Required: 1. Prepare a statement of cost of goods manufactured. 2. Prepare an absorption-costing income statement COST OF GOODS MANUFACTURED, INCOME STATEMENT Jordan Company produces a chemical reagent used by medical laboratories. For 2007, Jordan reported the following: Work-in-process inventory, January 1 $ 13,250 Work-in-process inventory, December 31 13,250 Finished goods inventory, January 1 (24,000 units) 170,000 Finished goods inventory, December 31 (12,000 units) 85,000 Direct materials inventory, January 1 15,600 Direct materials inventory, December 31 14,000 Direct materials used 120,000 Direct labor 72,000 Plant depreciation 9,500 Salary, production supervisor 45,000 Indirect labor 36,000 Depreciation, factory equipment $25,000 Administrative expenses 52,000 Supplies (half used in the factory, half used in the sales office) 4,000 Jordan produced 100,000 units during 2007 and sold 127,000 units at $6 per unit. Required: 1. Prepare a statement of cost of goods manufactured. 2. Prepare an absorption-costing income statement

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