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What are the selling and administration expenses?
Cost of Goods Manufactured, Income Statement
Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported the following:
Work-in-process inventory, January 1$ 13,150
Work-in-process inventory, December 31 28,270
Finished goods inventory, January 1 112,970
Finished goods inventory, December 31 85,120
Direct materials inventory, January 1 3,410
Direct materials inventory, December 31 2,620
Direct materials purchased183,730
Direct labor138,150
Plant depreciation19,850
Salary, production supervisor46,630
Indirect labor68,040
Utilities, factory15,600
Sales commissions42,410
Salary, sales supervisor75,040
Depreciation, factory equipment31,760
Administrative expenses168,210
Supplies (40% used in the factory, 60% used in the sales office)17,770
Advertising expense43,050
Last year, Orman produced 89,360 units and sold 90,410 units at $11.00 per unit.
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