[supra94]

The month ending December 31,2011 is as follows:
Sales:300,000
Selling and admin expenses: 18000
Net income: 8000

Beginning inventories:
Direct material: 20,000
Work in process: 18000
Finished goods 62000

Ending direct materials is 20% larger than beginning direct materials. Ending work in process is half of the beginning work in process. Ending finished goods increased by $8000 during the year. Prime costs and conversion costs are 80% and 70% of total manufacturing costs added, respectively.
a. prepare a statement of cost of goods manufactured for December.
b. prepare an income statement for December.