Umair Company is a manufacturing of computers. Its controller resigned in October 2019. An inexperienced assistant accountant has prepared the following income statement for the month of October 2019. UMAIR COMPANY Income statement For the Month Ended October 31,2019 Sales (net) $390,00 Less: Operating expenses Raw materials purchases $ 132,000 Direct labor cost 95,000 Advertising expense 45,000 Selling and administrative salaries 37,500 Rent on factory facilities 30,000 Depreciation on sales equipment 22,500 Depreciation on factory equipment 15,500 Indirect labor cost 14,000 Utilities expense 6,000 insurance expense 4,000 401,500 Net loss -$11,500 Prior to October 2019 the company had been profitable every month. The company’s president is concerned about the accuracy of the income statement. As his friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows. October 1 October 31 Raw materials $ 9,000 $17,000 Work in process 8,000 7,000 finished goods 15,000 24,000 Inventory balance at the beginning and end of October were: Only 30% of the utilities and 70% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Instructions: Prepare a schedule of the cost of goods manufactured for the October 2019.
https://paperwritingservices.net/wp-content/uploads/2021/08/whatsapp-logo-300x115.jpeg 0 0 Paper writing services https://paperwritingservices.net/wp-content/uploads/2021/08/whatsapp-logo-300x115.jpeg Paper writing services2019-05-24 17:28:062019-05-24 17:28:06Umair Company is a manufacturing of computers. Its controller resigned in October 2019. An inexperienced assistant accountant has prepared the following income statement for the month of October 2019. UMAIR