Santos Company is a manufacturing firm that has the following inventory balances: 1/1/20x112/31/20x1 Raw materials Work-in-Process...

 

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Santos Company is a manufacturing firm that has the following inventory balances: 1/1/20x112/31/20x1 Raw materials Work-in-Process Finished goods $ 24,000 73,000 27,000 56,000 42,000 The following transactions were recorded for the year: a. Raw materials were purchased, $416,000. b. Direct material used in production, $380,000; indirect materials used, $40,000 c. The following employee costs were incurred: direct labor, $414,000; indirect labor, $60,000; and administrative salaries, $212,000. g. Sales for the year totaled $1,416,000 Required: Data d. Selling costs, $141,000. e. Factory utility costs, $20,000. f. Depreciation for the year was $81,000 of which $73,000 is related to factory operations and $8,000 is related to selling, general, and administrative activities. 1. Prepare the schedule of cost of goods manufactured. 2. Prepare income statement. 3. How would ending inventories be presented in which financial statement and for what amount? Santos Company is a manufacturing firm that has the following inventory balances: 1/1/20x112/31/20x1 Raw materials Work-in-Process Finished goods $ 24,000 73,000 27,000 56,000 42,000 The following transactions were recorded for the year: a. Raw materials were purchased, $416,000. b. Direct material used in production, $380,000; indirect materials used, $40,000 c. The following employee costs were incurred: direct labor, $414,000; indirect labor, $60,000; and administrative salaries, $212,000. g. Sales for the year totaled $1,416,000 Required: Data d. Selling costs, $141,000. e. Factory utility costs, $20,000. f. Depreciation for the year was $81,000 of which $73,000 is related to factory operations and $8,000 is related to selling, general, and administrative activities. 1. Prepare the schedule of cost of goods manufactured. 2. Prepare income statement. 3. How would ending inventories be presented in which financial statement and for what amount?

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