Terra Cotta Designs manufactures custom tiles. The following information relates to the fiscal year ending December 31,

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Terra Cotta Designs manufactures custom tiles. The following information relates to the fiscal year ending December 31, 2011.

Beginning balance in Raw Material Inventory.......$ 400,000

Purchases of raw material...............1,000,000

Ending balance in Raw Material Inventory...........200,000

Beginning balance in Work in Process...........600,000

Ending balance in Work in Process............350,000

Direct labor cost....................2,100,000

Manufacturing overhead applied.............600,000

Beginning balance in Finished Goods...........700,000

Ending balance in Finished Goods............350,000

Sales.........................6,100,000

Selling expenses...................400,000

General and administrative expenses...........850,000


Required

a. Prepare a schedule of cost of goods manufactured. Assume that there are no indirect material costs.

b. Prepare an income statement for fiscal 2011.Ignore income taxes.


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Related Book For  answer-question

Managerial Accounting

ISBN: 978-0470578797

4th edition

Authors: James Jiambalvo

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