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    Sassyg14 Posts: 4, Reputation: 1
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    Feb 11, 2010, 09:30 AM
    How 2 prepare schedule of cost of goods manufactured and sold and an income statement
    Grange Corporation is a manufacturer of precision drill bits. The bits are sold to machine and equipment dealers, and marketing is handled via a network of regionalized manufacturer representatives. The only selling expenses pertain to commissions paid to the manufacturer representatives. The commissions are 7% of total sales. The following information pertains to operations during the calendar year 20X9.

    Sales $14,409,435
    Administrative salaries $876,090
    Direct labor $3,399,674
    Indirect labor $1,232,055
    Total depreciation $310,300
    Total utilities $260,000
    Interest expense $67,500
    Other factory overhead $77,454

    Of the total depreciation, 70% relates to manufacturing and 30% relates to general and administrative costs. Of the total utilities, 60% relates to manufacturing and 40% relates to general and administrative costs.
    Following is information about various inventory components:

    Raw.Mat In.Mat WIP Fin.Goods
    B.balance 775,090 55,080 1,213,678 1,242,664
    Purchases 4,334,665 320,500 n/a n/a
    End. bal. 812,332 71,715 944,070 1,553,509
    Sassyg14's Avatar
    Sassyg14 Posts: 4, Reputation: 1
    New Member

    Feb 11, 2010, 09:31 AM

    This looks confusing... I'll repost it

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