Answer:
Cost of Goods Manufactured 356,700
Net Profit before Income Tax= 566,350
Explanation:
<u><em>Waterways Corporation</em></u>
<u><em>Cost of Goods Manufactured Schedule </em></u>
Raw materials Inventory - October 31 41,000
Add Raw Materials Purchases 186,500
Less Raw Materials Inventory - November 30 53,000
Raw Materials Used = 174,500
Direct labor 44,000
<u>Factory Overhead: 145,200</u>
Indirect labor 45,000
Factory Utilities 10,500
Factory Supplies Used 16,300
Depreciation-Factory Equipment 17,500
Property Tax on Factory 5,500
Rent - Factory Equipment 45,000
<u>Repairs - Factory Equipment 5,400</u>
Total Manufacturing Costs 363,700
Add Work in Process Inventory - November 30 44,000
Cost of Goods Available for Manufacture 407,700
Less Work in Process Inventory - October 31 51,000
Cost of Goods Manufactured 356,700
<u><em>Waterways Corporation</em></u>
<u><em>Cost of Goods Sold Schedule </em></u>
Cost of Goods Manufactured 356,700
Add Finished Goods Inventory - November 30 71,800
Cost of Goods Available for Sale 428,500
Less Finished Goods Inventory - October 31 73,500
Cost Of Goods Sold 355,000
<u><em>Waterways Corporation</em></u>
<u><em>Income Statement for the month of November</em></u>
Sales 1,425,000
Less Cost of Goods Sold 355,000
Gross Profit 1070,000
Less Operating expenses : 503650
Office Supplies Expenses 71,000
Advertising Expense 52,000
Salaries 335,000
Depreciation-Office Equipment 2,900
Sales Commissions 42,750
Net Profit before Income Tax= 566350
( here the salaries are treated as office salaries not factory salaries)
<u><em>Waterways Corporation</em></u>
<u><em>Balance Sheet for the month of November</em></u>
<u><em>Assets </em></u>
Cash 255,000
Accounts Receivable $290,000
Prepaid Expenses 42,500
