Please prepare the income statement for the Davis Corporation. Your help is grea
ID: 2419412 • Letter: P
Question
Please prepare the income statement for the Davis Corporation. Your help is greatly appreciated.
DATA SECTION:
For the Month Ended December 30, 2015
Balance Balance
Dec 1 Dec 30 Dec.30
Raw Material Inventory $ 5,600 $ 4,100
Work in Process Inventory 10,200 12,800
Finished Goods Inventory 8,100 6,700
Purchases of Raw Materials $63,000
Direct Manufacturing Labor 15,000
Indirect Manufacturing Labor 32,000
Plant Insurance 8,000
Depreciation Expense - Plant, Building, and Equip. 22,000
Repairs and Maintenance - Plant 7,200
Marketing, Distribution, and Customer-Service Costs 24,000
General and Administrative Costs 19,200
Revenue 258,300
Income Tax Rate 40.00%
Check Figures: Net Income = $40,560, COGM = $146,100
Explanation / Answer
Income Statement:
$ Revenue 258300 Total 258300 Less: Costs: Cost of goods sold: (Opening + Purchases - Closing) = 5600 + 10200 + 8100 + 63000 - 4100 - 12800 - 6700) 63300 Direct Manufacturing labor 15000 Indirect manufacturing labor 32000 Plant insurance 8000 Depreciation Expense - Plant, Building, and Equip. 22000 Repairs and maintenance plant 7200 Marketing, Distribution, and Customer-Service Costs 24000 General and administrative cost 19200 Total 190700 Income before tax 67600 Less: Tax @ 40% 27040 Net Income 40560Related Questions
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