Answer:
The preparation is presented below:
Explanation:
Robstown Corporation
Statement of cost of goods manufactured
For the year ended December 31, 20Y8
Beginning Work in process inventory $63,900
Direct Material
Beginning inventory $44,250
Add: Material Purchased $ 556,600
Cost of material available $600,850
Less: Ending material inventory $31,700
Direct materiel used $569,150
Direct Labor $ 1,100,000
Factory overhead
Indirect labor $ 115,000
Depreciation expense of Factory equipment $80,000
Heat, Light and Power $53,300
Property taxes of Factory $40,000
Rent expense of Factory $27,000
Supplies of Factory $9,500
Misc. expense $11,400
Total factory overhead $336,200
Total Manufacturing Cost incurred $2,005,350
Less: Ending work in process inventory -$80,000
Cost of goods manufactured $ 1,989,250
Robstown Corporation
Income Statement
For the year ended December 31, 20Y8
Sales $3,850,000
Less: Cost of goods sold
Beginning finished goods inventory $101,200
Add: Cost of goods manufactured $1,989,250
Cost of goods available for sale $2,090,450
Less: Ending finished goods inventory $99,800
Cost of goods sold $1,990,650
Gross profit $1,859,350
Operating expenses
Administrative expenses
Depreciation expense - Office equipment $30,000
Office salaries expense $318,000
Property taxes - Office building $25,000
Total administrative expense $373,000
Selling expenses
Advertising expenses $400,000
Sales salaries expense $200,000
Total selling expenses -$600,000
Less: Total operating expenses -$973,000
Net income $886,350
