Question: Use the information in Exercise to prepare an income statement for Randa Company (a manufacturer). Assume that its cost of goods manufactured is $546,390.

Exercise: Given the following selected account balances of Randa Company, prepare its manufacturing statement for the year ended on December 31, 2011. Include a listing of the individual overhead account balances in this statement.

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,252,000

Raw materials inventory, Dec. 31, 2010 . . . . . . . . . . . 39,000

Goods in process inventory, Dec. 31, 2010 . . . . . . . 55,900

Finished goods inventory, Dec. 31, 2010 . . . . . . . . . . 64,750

Raw materials purchases . . . . . . . . . . . . . . . . . . . . . . . 177,600

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,000

Factory computer supplies used . . . . . . . . . . . . . . . . . 19,840

Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,000

Repairs-Factory equipment . . . . . . . . . . . . . . . . . . . . 7,250

Rent cost of factory building . . . . . . . . . . . . . . . . . . . . 59,000

Advertising expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 96,000

General and administrative expenses . . . . . . . . . . . . . 131,300

Raw materials inventory, Dec. 31, 2011 . . . . . . . . . . . 44,700

Goods in process inventory, Dec. 31, 2011 . . . . . . . 43,500

Finished goods inventory, Dec. 31, 2011 . . . . . . . . . . 69,300