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[solution]: MKTG 310 Prepare Statements for a Manufacturing Company


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Problem 2-59 Prepare Statements for a Manufacturing Company (LO 2-2, 4)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$1,646Building and machine depreciation (75% of this amount is for factory)900Building utilities (90% of this amount is for factory)1,290Direct labor845Direct materials inventory, December 3113Direct materials inventory, January 113Direct materials purchases3,700Factory supervision494Finished goods inventory, December 3170Finished goods inventory, January 151Indirect factory labor911Indirect materials and supplies675Marketing costs865Property taxes on building (85% of this amount is for factory)900Sales revenue13,004Work-in-process inventory, December 3127Work-in-process inventory, January 129Required: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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