PRINTER VERSION BACH Question 5 Tombert Company is a manufacturer of computers. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the mont October 2020 TOMBERT COMPANY Income Statement For the Month Ended October 31, 2020 Sales (net) $ 784,600 Less: Operating expenses Raw materials purchases $264,350 Direct labour cost 190,050 Advertising expense 89,850 Selling and administrative salaries 74,350 Rent on factory facilities 60,000 Depreciation on sales equipment Depreciation on factory equipment 31,850 Indirect labour cost 28,800 Utilities expense 12,900 Insurance expense 805,050 Net Loss $(20,450) 4,150 8,750 Prior to October 2020, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As his friend, he has asked you to revie the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired the following additional information 1. Inventory balances at the beginning and end of October were as follows: Raw materials Work in process Finished goods October 1 $6,150 16,250 30,300 October 31 $29,550 14,750 45,350 2. Only 80% of the utilities expense and 52% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities Prepare a schedule of the cost of goods manufactured for October 2020. TOMBERT COMPANY - adults Q G Search or type URL