Question: QUESTION 2: 20 marks SHOW ALL SUPPORTING CALCULATIONS FOR THIS PROBLEM. NO MARKS WILL BE AWARDED FOR ANSWERS TO THE PROBLEMS UNSUPPORTED BY CLEARLY SHOWN
QUESTION 2: 20 marks SHOW ALL SUPPORTING CALCULATIONS FOR THIS PROBLEM. NO MARKS WILL BE AWARDED FOR ANSWERS TO THE PROBLEMS UNSUPPORTED BY CLEARLY SHOWN CALCULATIONS. Vivus is a specialty pharmaceutical company incorporated in California in 1991 and reincorporated in Delaware in 1996. In April 2018, the company hired John Amos as its new Chief Executive Officer. Under Amos' leadership, the company ventured into manufacturing many new product lines, including Pancrease, a prescription medicine used to treat people who cannot digest food normally because their pancreas does not make enough enzymes due to cystic fibrosis or other conditions. At the end of December 2019, the accounting records relating to the Pancrease product line showed the following: Work in process inventory, December 31, 2019 Finished goods inventory, December 31, 2018, Finished goods inventory, December 31, 2019 Sales revenue Customer service toll-free line expense Factory utilities Delivery expense Sales salaries expense Factory maintenance services Direct Labour Direct material purchases Rent on factory Raw materials inventory, December 31, 2018 Raw materials inventory, December 31, 2019 Work in process inventory, December 31, 2018 $ 9,720 $0 $ 7,300 $ 251,000 $ 3,900 $ 12,400 $6,500 $ 10,300 $ 2,900 $ 46,600 $ 96,000 $ 24,500 $ 29,500 $ 19,800 $0 & Required: 1. Prepare a schedule of cost of goods manufactured for Vivus' Pancrease product line for the year ended December 31, 2019. 10 marks 2. Prepare an income statement for Vivus' Pancrease product line for the year ended December 31, 2019. 10 marks
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