Income Statement And Supporting Schedules The Following Financial Information Is For 880730

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Income Statement and Supporting Schedules. The following financial information is for Industrial Company. (Note that the most current financial information is presented in the first column.)

 

 

December 31, 2011

December 31, 2010

Raw materials inventory

$

24,000

$

30,000

Work-in-process inventory

1,800,000

1,650,000

Finished goods inventory

1,050,000

1,230,000

     

Of the total raw materials placed in production for the year, $36,000 was for indirect materials. Industrial had $3,795,000 in sales for the year ended December 31, 2011. The company also had the following costs for the year:

Selling

$ 270,000

General and administrative

$ 720,000

Raw materials purchases

$ 300,000

Direct labor used in production

$ 375,000

Manufacturing overhead

$1,890,000

Required:

a. Prepare a schedule of raw materials placed in production for the year ended December 31, 2011.

b. Prepare a schedule of cost of goods manufactured for the year ended December 31, 2011.

c. Prepare a schedule of cost of goods sold for the year ended December 31, 2011.

d. Prepare an income statement for the year ended December 31, 2011.

e. Describe the three types of costs included in cost of goods sold on the income statement. (Dollar amounts are not necessary in your descriptions.)