Salma Sweet manufactures ice cream to be distributed around the restaurants in Yanbu. Some of its...
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Salma Sweet manufactures ice cream to be distributed around the restaurants in Yanbu. Some of its costs from the current year include: Sugar and milk use in manufacturing of ice cream Depreciation on ice cream machine Factory supervisor salary Ice cream flavors of strawberry, chocolate and vanilla Salary of the worker mixing the ice cream Sales Revenue Insurance expenses Advertising expenses Rent on the factory building Utilities expenses Factory maintenance salary Electricity bill for factory Delivery expenses Salary of factory cleaners $120,000 $13,000 15,000 $34,000 $89,000 $525,000 Raw material Work In Process Finished Goods $23,000 $36,000 $12,000 $24,000 $12,000 $8,000 $7,000 $6,000 $5,000 Factory supplies $5,000 Boxes and ice cream containers for selling Depreciation expenses for office building $6,000 $4,000 Petrol/ gasoline expenses $15,000 In addition, the following information is available at the end of the year January 1 $12,000 $18,000 December 31 $8,000 $10,500 $15,000 2. 40% of the insurance expenses is for factory building and the remaining for office building 3. Out of the total utilities expenses, 55% is allocated for factory building and the remaining for office building. 4. 60% of petrol/gasoline expenses is used in office buildings and the remaining amount is used in factory buildings. Required: a. Prepare a schedule of cost of goods manufactured for the company. b. Prepare the company income statement. Salma Sweet manufactures ice cream to be distributed around the restaurants in Yanbu. Some of its costs from the current year include: Sugar and milk use in manufacturing of ice cream Depreciation on ice cream machine Factory supervisor salary Ice cream flavors of strawberry, chocolate and vanilla Salary of the worker mixing the ice cream Sales Revenue Insurance expenses Advertising expenses Rent on the factory building Utilities expenses Factory maintenance salary Electricity bill for factory Delivery expenses Salary of factory cleaners $120,000 $13,000 15,000 $34,000 $89,000 $525,000 Raw material Work In Process Finished Goods $23,000 $36,000 $12,000 $24,000 $12,000 $8,000 $7,000 $6,000 $5,000 Factory supplies $5,000 Boxes and ice cream containers for selling Depreciation expenses for office building $6,000 $4,000 Petrol/ gasoline expenses $15,000 In addition, the following information is available at the end of the year January 1 $12,000 $18,000 December 31 $8,000 $10,500 $15,000 2. 40% of the insurance expenses is for factory building and the remaining for office building 3. Out of the total utilities expenses, 55% is allocated for factory building and the remaining for office building. 4. 60% of petrol/gasoline expenses is used in office buildings and the remaining amount is used in factory buildings. Required: a. Prepare a schedule of cost of goods manufactured for the company. b. Prepare the company income statement.
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Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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