alters ads

Friday, 12 October 2012

Following are the selected account balances of Randa Company:

Exercise 18-12 Income statement preparation L.O. P2
Following are the selected account balances of Randa Company:

Sales $ 1,078,000
Raw materials inventory, Dec. 31, 2010 38,000
Goods in process inventory, Dec. 31, 2010 55,000
Finished goods inventory, Dec. 31, 2010 66,800
Raw materials purchases 172,700
Direct labor 242,000
Factory computer supplies used 22,900
Indirect labor 59,000
Repairs—Factory equipment 7,250
Rent cost of factory building 50,000
Advertising expense 105,000
General and administrative expenses 129,000
Raw materials inventory, Dec. 31, 2011 40,500
Goods in process inventory, Dec. 31, 2011 44,500
Finished goods inventory, Dec. 31, 2011 71,600


Prepare an income statement for Randa Company (a manufacturer). Assume that its cost of goods manufactured is $561,850. (Input all amounts as positive values. Omit the "$" sign in your response.)

RANDA COMPANY
Income Statement
For Year Ended December 31, 2011
Sales correct $ 1,078,000 correct
Cost of goods sold
Finished goods inventory, December 31, 2010 correct $ 66,800 correct
Cost of goods manufactured correct 561,850 correct

Cost of goods available for sale 628,650 correct
Less: Finished goods inventory, December 31, 2011 correct 71,600 correct

Cost of goods sold 557,050 correct

Gross profit correct 520,950 correct
Operating expenses
General and administrative expenses correct correct
Advertising expenses correct correct

Total operating expenses 234,000 correct

Operating income correct $ 286,950 correct