The following calendar year-end information is taken from the December 31, 2009, adjusted trial balance and other records of Gucci Company.
Advertising expense . . . . . . . . . . . . . . . . . . . . . . . . $ 26,600
Depreciation expense—Office equipment . . . . . . . . . 11,500
Depreciation expense—Selling equipment . . . . . . . . . 10,800
Depreciation expense—Factory equipment . . . . . . . . 38,200
Factory supervision . . . . . . . . . . . . . . . . . . . . . . . . . 105,700
Factory supplies used . . . . . . . . . . . . . . . . . . . . . . . 7,800
Factory utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,000
Inventories
Raw materials, December 31, 2008 . . . . . . . . . . . . 165,900
Raw materials, December 31, 2009 . . . . . . . . . . . . 187,000
Goods in process, December 31, 2008 . . . . . . . . . 18,100
Goods in process, December 31, 2009 . . . . . . . . . 24,600
Finished goods, December 31, 2008 . . . . . . . . . . . 164,100
Finished goods, December 31, 2009 . . . . . . . . . . . 135,900
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 680,400
Income taxes expense . . . . . . . . . . . . . . . . . . . . . . . 291,500
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,800
Miscellaneous production costs . . . . . . . . . . . . . . . . 9,800
Office salaries expense . . . . . . . . . . . . . . . . . . . . . . 74,000
Raw materials purchases . . . . . . . . . . . . . . . . . . . . . 965,000
Rent expense—Office space . . . . . . . . . . . . . . . . . . 23,000
Rent expense—Selling space . . . . . . . . . . . . . . . . . . 25,200
Rent expense—Factory building . . . . . . . . . . . . . . . 81,600
Maintenance expense—Factory equipment . . . . . . . . 37,100
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,630,000
Sales discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,600
Sales salaries expense . . . . . . . . . . . . . . . . . . . . . . . 398,400

Required
1. Prepare the company’s 2009 manufacturing statement.
2. Prepare the company’s 2009 income statement that reports separate categories for
(a) Selling expenses and
(b) General and administrative expenses.
Analysis Component
3. Compute the
(a) Inventory turnover, defined as cost of goods sold divided by average inventory, and
(b) Days’ sales in inventory, defined as 365 times ending inventory divided by cost of goods sold, for both its raw materials inventory and its finished goods inventory. (To compute turnover and days’ sales in inventory for raw materials, use raw materials used rather than cost of goods sold.) Discuss some possible reasons for differences between these ratios for the two types of inventories.