Madison Company has the following information available Cost

Madison Company has the following information available: Cost Amount Cost Amount Depreciation Factory Equipment 4,000 15,550 50,000 120,000 2,000 3,800 62,300 17,775 Factory Utilities 3,000 Factory Maintenance 1,100Indirect Labor 48,990 Direct Labor Wages 14,000 98,000 Supervisor\'s Sal Direct Material Purchases Depreciation-Office Sales Commissions President\'s Salary Office Utilities Accounts Receivable Office Salaries ent 1,500 Factory Insurance 12,500 Cash 15,650 Factory Rent Other information includes: Inventory Beginning Ending Raw Materials Work In Process Finished Goods 36,800 52,500 70,250 62,750 86,210 89,680 Instructions: a. b. c. Prepare a Cost of Goods Manufactured Schedule Prepare an Income Statement (Net Sales = $420,000) Prepare a current assets section of the balance sheet

Solution

Prepare cost of goods manufactured schedule :

Prepare income statement :

c) Current asset section of the balance sheet ;

Direct material used
Beginning raw material	36800
Raw material purchase	120000
Less; Ending raw material	(62750)	94050
Direct labour		50000
Factory overhead :
Factory rent	17775
Factory utilities	3000
Factory maintenance	1100
Production supervisor\'s salary	48990
Depreciation equipment	4000
Indirect labour	15550
Factory insurance	3800	94215
Total manufacturing cost		238265
Beginning work in process		52500
Total cost of work in process		290765
Less: Ending work in process		(86210)
Cost of goods manufactured		204555