Problem - The following data were taken from the records of Stellar Manufacturing Company for the year ended June 30, 2010.
|
Raw Materials
|
|
Factory Insurance
|
$7,400
|
|
Inventory 7/1/09
|
$47,000
|
Factory Machinery
Depreciation
|
7,700
|
|
Raw Materials
|
|
Plant Manager's Salary
|
30,000
|
|
Inventory 6/30/10
|
44,200
|
Factory Utilities
|
12,900
|
|
Finished Goods
|
|
Selling Expenses
|
75,000
|
|
Inventory 7/1/09
|
85,000
|
Sales
|
475,000
|
|
Finished Goods
|
|
Sales Discounts
|
2,500
|
|
Inventory 6/30/10
|
77,800
|
|
|
|
Work in Process
|
|
Factory Property Taxes
|
6,100
|
|
Inventory 7/1/09
|
9,500
|
Factory Repairs
|
800
|
|
Work in Process
|
|
Raw Materials Purchases
|
67,500
|
|
Inventory 6/30/10
|
8,000
|
Cash
|
28,000
|
|
Direct Labor
|
145,100
|
Prepaid Expenses
|
2,000
|
|
Indirect Labor
|
18,100
|
Administrative Expenses
|
25,000
|
|
Accounts Receivable
|
27,000
|
Short-term investments
|
5,000
|
Instructions -
(a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.)
(b) Prepare an entire income statement through net income. (You may need to expand the working papers for this instruction.)
(c) Prepare the current asset section of the balance sheet at June 30, 2010.