QUESTION ONE (20 Marks)

. The following data for the just completed year ended September 30, 2021 are taken from the accounting records of Deliverance Company:

Advertising expense $ 200,000

Direct labour cost 180,000

Purchases of raw materials 284,000

Rent building (60% factory, 40% offices) 100,000

Indirect factory labour 112,600

Sales commissions 90,000

Utilities, factory 28,000

Office Salaries 120,000

Maintenance, factory equipment 48,000

Sales 1,450,000

Supplies, factory 1,400

Depreciation, office equipment 16,000

Depreciation, factory equipment 80,000

Inventories

Beginning Ending

Raw materials $20,000 $ 24,000

Work in process 30,000 60,000

Finished goods 180,000 80,000

Required:

1. Prepare a schedule of cost of goods manufactured for the year in good form. (10 marks)

Answer parts 1 and 2 in the space provided on page 2.

2. Prepare an income statement for the year in good form. (8 marks)

3. What are the total conversion costs for the year?___________________(2 marks)