Question

The following data from the just-completed year are taken from the accounting records of Eccles Company:

Sales	$ 692,000
Direct labour cost	97,000
Raw material purchases	139,000
Selling expenses	107,000
Administrative expenses	50,000
Manufacturing overhead applied to work in process	217,000
Actual manufacturing overhead costs	234,000

Inventories:	Beginning of Year		End of Year
Raw materials	$ 8,700		$10,700
Work in process	5,700		20,700
Finished goods	70,700		25,700

Required:

1.	Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

       

   

2.	Prepare a schedule of cost of goods sold.

       

3.	Prepare an income statement.

      

Answer 1