Consider the following information for Blue Water Equipment, Inc., a manufacturer of sailboat rigging, blocks, and cordage.

Advertising expenses …………… $ 111,000

Depreciation expense—admin. office ………. 88,000

Depreciation expense—plant and equip. ……… 299,000

Depreciation expense—delivery trucks …….. 55,000

Direct materials inventory, beginning ………. 22,000

Direct materials inventory, ending ………. 16,000

Direct materials purchases …………. 348,000

Direct labor ………………… 455,000

Indirect labor ………………… 329,000

Finished goods inventory, beginning ……… 66,000

Finished goods inventory, ending ………. 42,000

Insurance on plant ……………….. 44,000

Heat and light for plant ………….. 23,000

Repairs on plant building …………… 34,000

Supervisor’s salary—plant …………. 85,000

Supplies—plant …………….. 118,000

Supplies—administrative office ………… 42,000

Work-in-process inventory, beginning …….. 14,000

Work-in-process inventory, ending ………. 11,000

Sales representatives’ salaries ………… 216,000

Sales revenue ………………. 2,312,000

Required
Prepare a statement of cost of goods manufactured and an income statement for Blue Water Equipment, Inc. for the year ended December 31, 2010.



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