The following information pertains to Princeton Manufacturing for 2015:

Additional Information:
a. The gross profit margin is 73.25 percent.
b. Depreciation is charged to production at 70 percent.
c. Utilities are charged to production at 90 percent.
Required:
1. Prepare a schedule of cost of goods manufactured for the year ended December 31.
2. Prepare a schedule of cost of goods sold.
3. Prepare an income statement for the year ended December 31.

Transcribed Image Text:

$ 30,000 400,000 50,000 Direct labour Sales Selling expenses Raw (direct) materials on hand: January 1 December 31 8,000 4,000 18,000 General and administrative expenses Finished goods: January 1 Work-in-process: January 1 December 31 Direct materials purchases Depreciation: factory Indirect labour 25,000 19,000 18,000 47,000 20,000 3,000 7,000 1,500 11,000 20,000 Indirect materials used Marketing promotions Factory taxes Utilities Courier costs (office) Miscellaneous plant overhead Plant repairs and maintenance 900 4,000 9,000 3,000 3,000 Customer service costs Fire insurance: factory equipment Materials handling costs 8,000