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  | $ 1,078,000 | |
| Cost of goods sold | ||
| Finished goods inventory, December 31, 2010 | $ 66,800 | |
| Cost of goods manufactured | 561,850 | |
| | ||
| Cost of goods available for sale | 628,650 | |
| Less: Finished goods inventory, December 31, 2011 | 71,600 | |
| | ||
| Cost of goods sold | 557,050 | |
| | ||
| Gross profit | 520,950 | |
| Operating expenses | ||
| General and administrative expenses | | |
| Advertising expenses | | |
| | ||
| Total operating expenses | 234,000 | |
| | ||
| Operating income | $ 286,950 | |
