Ask Question
21 May, 11:53

The following data pertain to Babor Company for the fiscal year ended December 31: Prior December 31 Current December 31 Purchases of materials $ 197,500 Direct labor 130,250 Indirect labor 51,500 Factory insurance 9,300 Depreciation-factory 36,250 Repairs and maintenance-factory 14,900 Marketing expenses 148,550 General and administrative expenses 87,950 Materials inventory $ 29,500 64,750 Work-in-Process inventory 16,250 18,600 Finished Goods inventory 18,300 24,400 Sales in the current year were $660,000. Required: Prepare a schedule of cost of goods manufactured and an income statement for the current year for Babor Company.

+1
Answers (1)
  1. 21 May, 13:05
    0
    Answer and Explanation:

    The preparation is presented below:

    Babor Company

    Cost of Goods Sold Statement

    For the fiscal year ended December 31

    Beginning work-in-process inventory $16,250

    Manufacturing costs:

    Direct materials:

    Beginning inventory $29,500

    Purchases $197,500

    Materials available $227,000

    Less: Ending inventory - $64,750

    Direct materials used $162,250

    Direct labor $130,250

    Other manufacturing costs

    Indirect labor $51,500

    Factory insurance $9,300

    Depreciation - factory $36,250

    Repairs and maintenance - factory $14,900

    Total of other manufacturing cost $111,950

    Total manufacturing costs: $404,450

    Total costs of work-in-process $420,700

    Less: Ending work-in-process - $18,600

    Cost of goods manufactured $402,100

    Beginning finished goods inventory $18,300

    Finished goods available for sale $402,400

    Less: Ending finished goods inventory - $24,400

    Cost of goods sold $396,000

    Babor Company

    Cost of Goods Sold Statement

    For the fiscal year ended December 31

    Sales $660,000

    Less: Cost of goods sold - $396,000

    Gross profit $264,000

    Less: Marketing expenses - $148,550

    Less: General and administrative expenses - $87,950

    Net operating income $27,500
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The following data pertain to Babor Company for the fiscal year ended December 31: Prior December 31 Current December 31 Purchases of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers