Madison Company has the following information available Amou

Madison Company has the following information available: Amount Costa Amount Factory Utilities H Depreciation Factory Equipment Factory M aintenance 1.100 Indirect LaborH 15,55 Direct Labor Wages Direct Material Purchases Depreciation Office 48 50 Supervisor\'s Sala Sales CommissionsH 120.0 President\'s SalaryH 98 Office Utilities H Factory Insurance CashH ReceivableH Office Salaries 15.6 :| Factory Rent 17,775 Other information includes: InventoryH Beginning Ending# Raw MaterialsA Work Ln ProcessH Finished GoodsH 62,7 86,210 70,2 89 a. Prepare a Cost of Goods Manufactured Schedule b.Prepare an Income Statement (Net Sales $420,000) c Prepare a current assets section of the balance sheet

Solution

Statement of Cost of Goods Manufactured Amount Amount Amount Current manufacturing costs: Cost of materials placed in production: Opening Raw materials $               36,800 Add: Purchases $           1,20,000 Total Available $           1,56,800 Closing Raw materials $               62,750 $              94,050 Factory Overhead Direct Labour Wages $              50,000 Production supervisor Salary $              48,990 Indirect Labour Wages $              15,550 Factory Rent $              17,775 Factory Supplies $                 3,000 Factory Depreciation $                 4,000 Factory Insurance $                 3,800 Factory Repair and maintenance $                 1,100 Indirect Material $             2,38,265 opening Work-in-process, $                52,500 Total costs in process $             2,90,765 Ending Work-in-process $                86,210 Cost of goods manufactured $             2,04,555 Statement of Retained Earning Sales Revenue $           4,20,000 Less: Cost of Goods Manufactured $           2,04,555 $           2,15,445 Add: Finished Goods inventory - Beginning $              70,250 Less: Finished Goods inventory - En ding $              89,680 Gross Revenue $           1,96,015 Less: Selling and admnistrative Expenses Sales Commission $               14,000 Presidents Salary $               98,000 Office Utilities $                 1,500 Office Salaries $               15,650 Depreciation Office Equipment $                 2,000 $           1,31,150 Net Revenue $              64,865 CURRENT ASSETS Account Receivable $               12,500 Cash $               62,300 $               74,800