Required information The following selected account balances are provided for De

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Required information

The following selected account balances are provided for Delray Mfg.

Prepare an income statement for Delray Mfg. (a manufacturer).

DELRAY MFG. Income Statement For Year Ended December 31, 2017 Cost of goods sold: Cost of goods available for sale Cost of goods sold Operating expenses: Total operating expenses Operating income

Sales $ 1,250,000 Raw materials inventory, Dec. 31, 2016 37,000 Work in process inventory, Dec. 31, 2016 53,900 Finished goods inventory, Dec. 31, 2016 62,750 Raw materials purchases 175,600 Direct labor 225,000 Factory computer supplies used 17,840 Indirect labor 47,000 Repairs—Factory equipment 5,250 Rent cost of factory building 57,000 Advertising expense 94,000 General and administrative expenses 129,300 Raw materials inventory, Dec. 31, 2017 42,700 Work in process inventory, Dec. 31, 2017 41,500 Finished goods inventory, Dec. 31, 2017 67,300

Explanation / Answer

Answer

delray mfg..

schedule of cost of goods sold for year ended 31 december 2017

delray mfg

income statement for year ended 31 december 2017

amount

particulars amount amount raw materials raw materials inventory dec31,2016 37000 purchase of raw material 175600 raw material available for use 212600 less raw material inventory dec31,2017 42700 raw material used 169900 direct labor 225000 manufacturing overhead factory computer supplies used 17840 indirect labor 47000 repairs factory equipment 5250 rent cost of factory building 57000 total manufacturing overhead 127090 total manufacturing costs 521990 add; work in process inventory dec31, 2016 53900 total cost of work in process 575890 less; work in process inventory dec31, 2017 41500 cost of goods manufactured 534390 add;finished goods inventory dec31,2016 62750 cost of goods availble for sale 597140 less;finished goods inventory dec31,2017 67300 cost of goods sold 529840

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