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DATA INPUT
Laredo Luggage Company for the year 20x2
Sales revenue 475,000$
Work-in-process inventory, December 31 15,000
Work-in-process inventory, January 1 20,000
Selling and administrative expenses 75,000
Income tax expense 45,000
Purchase of raw material 90,000
Raw-material inventory, December 31 12,500
Raw-material inventory, January 1 20,000
Direct labor 100,000
Utilities: plant 20,000
Depreciation: plant and equipment 30,000
Finished-goods inventory, December 31 25,000
Finished-goods inventory, January 1 10,000
Indirect material 5,000
Indirect labor 7,500
Other manufacturing overhead 40,000
SOLUTION
1. Schedule of cost of goods manufactured
Direct Material:
Raw-material inventory, January 1 20,000$
Manufacturing overhead:
Indirect material 5,000$
Indirect labor 7,500
2. Schedule of cost of goods sold
Finished goods inventory, January 1 10,000$
3. Income Statement
Sales revenue 475,000$
Less: Cost of goods sold 290,000
