Answer:
Cost of Good Manufactured
Work in Process,Jan 1 $60,000
Direct Material Used $200,000
Direct Labour $300,000
Manufacturing Overhead <u>$400,000</u>
Total Manufacturing Cost <u>$900,000</u>
$960,000
Less: Work in Process, Dec 31 <u>$40,000 </u>
Cost of Good Manufactured <u>$920,000</u>
Multi-Income Statement
For the Year Ended December 31
Net Sales Revenue $1,800,000
<u>Cost of Good Sold</u>
Finished Goods,Jan 1 $50,000
Cost of Goods Manufactured <u>$920,000</u>
Cost of Goods Available For Sales $970,000
Finished Goods,Dec 31 -<u>$20,000 </u>
Cost of Goods Sold <u>$950,000</u>
Gross Profit $850,000
Selling and Administrative Expense <u>$500,000</u>
Net Profit Before Tax $350,000
Income Tax Expense <u>$70,000</u>
Net Profit <u>$280,000</u>