The company manufactured 4,000 work desks during the entire year. Elon says they have 500 desks stations in the finished goods inventory at the beginning of the year and that the retail selling price for each desk is $400. At the end of the year, there were 700 work desks in the finished goods inventory. Elon provides the following information and asks you to create a Cost of Goods Manufactured (COGM) statement and also an income statement and to give them some advice for the business costs based on these numbers:      

 Utilities. Work-Longer Hours Company Factory$ 11,900

Sales Supervisors Salary 90,000

Salespersons, Commission     180,000

General administration  300,000

Purchases in raw materials    320,000

Beginning materials inventory       46,800

Ending materials inventory    66,800

Beginning work in process inventory     13,040

Ending work in process inventory  14,940

Beginning finished good inventory 80,000

Ending finished good inventory     114,100

Direct Labour 200,000

Indirect Labour       40,000

Rent, Factory Building    42,000

Depreciation, Factory equipment  60,000

SOLVE and ANALYZE:     

1) Elon asks you to prepare a statement of cost of goods manufactured (COGM) and 1b) an income statement. 

2) After reviewing the statement of COGM and income statement do an analysis for Elon to determine what are the biggest costs and give solutions on how to reduce costs, boost sales and improve profits next year using management accounting theory.

Answer rating: 100% (QA)

Statement of Cost of Goods Manufactured Income Statement Here is the computa... View the full answer