Question

Required information

Use the following information for the Exercises below.

The following selected account balances are provided for Delray Mfg.

Sales	$	1,136,000
Raw materials inventory, Dec. 31, 2016		44,000
Work in process inventory, Dec. 31, 2016		54,100
Finished goods inventory, Dec. 31, 2016		62,400
Raw materials purchases		198,300
Direct labor		234,000
Factory computer supplies used		22,400
Indirect labor		51,000
Repairs—Factory equipment		5,250
Rent cost of factory building		59,000
Advertising expense		110,000
General and administrative expenses		144,000
Raw materials inventory, Dec. 31, 2017		49,500
Work in process inventory, Dec. 31, 2017		45,200
Finished goods inventory, Dec. 31, 2017		67,900

Exercise 1-14 Income statement preparation LO P2

Prepare an income statement for Delray Mfg. (a manufacturer).

DELRAY MFG.
Income Statement
For Year Ended December 31, 2017
Cost of goods sold
Cost of goods available for sale
Cost of goods sold
Operating expenses
Total operating expenses
Operating income

Answer 1