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The administrative offices and manufacturing plant of Billings Tool & Die share the same building. The...

The administrative offices and manufacturing plant of Billings Tool & Die share the same building. The following information (in $000s) appears in the accounting records for last year: Administrative costs $ 1,653 Building and machine depreciation (75% of this amount is for factory) 800 Building utilities (90% of this amount is for factory) 1,310 Direct labor 835 Direct materials inventory, December 31 16 Direct materials inventory, January 1 10 Direct materials purchases 3,640 Factory supervision 495 Finished goods inventory, December 31 66 Finished goods inventory, January 1 57 Indirect factory labor 918 Indirect materials and supplies 691 Marketing costs 879 Property taxes on building (85% of this amount is for factory) 1,000 Sales revenue 12,945 Work-in-process inventory, December 31 28 Work-in-process inventory, January 1 34 Required: Prepare an income statement with a supporting cost of goods sold statement. (Enter your answers in thousands of dollars (i.e., 234,000 should be entered as 234).)

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Answer #1
Statement of Cost of Goods sold
Work-in-process inventory, January 1 $34
Direct materials inventory, January 1 10
Direct materials purchases 3,640
3650
Direct materials inventory, December 31 16
Direct material used 3634
Direct labor 835
Factory Overhead
Indirect materials and supplies 691
Indirect factory labor 918
Factory supervision 495
Property taxes on building (85% of this amount is for factory) 850
Building and machine depreciation (75% of this amount is for factory) 600
Building utilities (90% of this amount is for factory) 1,179
Total Manufacturing overhead 4733
Total WIP $9,236
Work-in-process inventory, December 31 28
Cost of good manufactured $9,208
add
Finished goods inventory, January 1 57
Less: Finished goods inventory, December 31 66
Cost of good sold 9199
Income Statement
Sales revenue 12,945
Less: cost of good sold 9199
Gross profit 3,746
Selling and Administrative expenses
Building and machine depreciation (25% of this amount is for factory) 200
Building utilities (90% of this amount is for factory) 131
Property taxes on building (85% of this amount is for factory) 150
Marketing costs 879
Total Selling and Administrative expenses 1360
Net Income 2,386
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