The following information is available for The NewQuest Corporation for 2016: In
ID: 2760068 • Letter: T
Question
The following information is available for The NewQuest Corporation for 2016: Inventories January 1 December 31 Materials $345,000 $436,800 Work in process 634,600 591,600 Finished goods 607,800 575,500 December 31 Advertising expense $ 294,800 Depreciation expense-office equipment 42,000 Depreciation expense-factory equipment 55,940 Direct labor 669,000 Heat, light, and power-factory 22,100 Indirect labor 78,500 Materials purchased 658,000 Office salaries expense 185,900 Property taxes-factory 19,000 Property taxes-office building 31,800 Rent expense-factory 32,300 Sales 3,010,000 Sales salaries expense 416,000 Supplies-factory 15,300 Miscellaneous costs-factory 9,300 Required: A. Prepare the 2016 statement of cost of goods manufactured.* B. Prepare the 2016 income statement.* * Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Enter all amounts as positive numbers.Explanation / Answer
Part A)
The cost of goods manufactured statement is given below:
_______
Part B)
The income statement is given below:
The NewQuest Corporation Statement of Cost of Goods Manufactured For the Year Ended December 2016 Direct Materials Beginning Raw Materials 345,000 Materials Purchased 658,000 Less Closing Raw Material 436,800 Direct Material Used in Production (A) 566,200 Direct Labor (B) 669,000 Factory Overhead Depreciation Expense-Factory Equipment 55,940 Heat, Light, and Power-Factory 22,100 Indirect Labor 78,500 Property Taxes-Factory 19,000 Rent Expense-Factory 32,300 Supplies-Factory 15,300 Miscellaneous Costs-Factory 9,300 Total Factory Overhead (C) 232,440 Total Manufacturing Costs (A+B+C) 1,467,640 Beginning WIP 634,600 Less Ending WIP 591,600 Cost of goods manufactured $1,510,640Related Questions
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