80.2K
Verified Solution
Link Copied!
A list of account balances for a Corporation follows:
Revenue and expenses: January 1 inventories:
Purchases of raw materials $140,000 Raw materials $ 45,000
Direct labor 225,000 Work in process 30,000
Indirect labor 40,000 Finished goods 105,000
Rent factory 84,000
Depreciation machinery 35,000 December 31 inventories:
Insurance factory 18,000 Raw materials $ 40,000
Salespersons salaries 72,000 Work in process 35,000
Maintenance machinery 12,000 Finished goods 110,000
Administrative salaries 50,000
Miscellaneous factory 26,000
Miscellaneous office 40,000
Sales 850,000
Required: Prepare an income statement. Use this format.
Net Revenues
Less: Cost of Goods Sold
Gross Margin
Less Operating Expenses
Net Income
Also separately indicate here the Cost of Goods Manufactured _________________ .
Please show step by step what you added to get each item, Thank you!
Answer & Explanation
Solved by verified expert
