Q1) Hurwitz Corporation had activities during 2007 which are given below:
| Raw Materials |
|
| Inventory January 1, 2007 |
$200,000 |
| Purchases of raw materials |
318,000 |
| Inventory December 31, 2007 |
210,000 |
| Direct Manufacturing labor |
180,000 |
| Utilities: plant |
50,000 |
| Depreciation: plant and equipments |
40,000 |
| Indirect materials |
30,000 |
| Indirect labor |
150,000 |
| Other manufacturing overhead |
60,000 |
| Sales revenues |
1,250,000 |
| Selling and administrative expenses |
150,000 |
| Income tax rate |
30% |
| Work in process inventory, December 31, 2007 |
120,000 |
| Work in process inventory, January 1, 2007 |
64,000 |
| Finished goods inventory, January 1, 2007 |
80,000 |
| Finished goods inventory, December 31, 2007 |
150,000 |
problems:
(a) Create schedule of cost of goods produced for 2007.
(b) Create schedule of cost of goods sold for 2007.
(c) Create the income statement for 2007.