Indicate whether each of the following costs incurred at a manufacturing company is period (P) or product (R) AND variable (V) or fixed (F).
a. Supplies at the factory
b. Depreciation of equipment at the executive office building
c. Factory heating and air conditioning
d. Assembly line worker wages
e. Salaries of top company executives
f. Direct materials used in making the product
g. 2016 property taxes associated with the factory
h. Salaries for sales supervisors
i. Office rent for sales personnel
j. Sales Commissions
Indicate whether each of the following costs incurred at a manufacturing company is period (P) or product (R) AND variable (V) or fixed (F).
a. Supplies at the factory
b. Depreciation of equipment at the executive office building
c. Factory heating and air conditioning
d. Assembly line worker wages
e. Salaries of top company executives
f. Direct materials used in making the product
g. 2016 property taxes associated with the factory
h. Salaries for sales supervisors
i. Office rent for sales personnel
j. Sales Commissions
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Statement of cost of goods manufactured and income statement for a manufacturing company
Instructions
Amount Descriptions
Statement of Cost of Goods Manufactured
Income Statement
X
Instructions
The following information is available for The NewQuest Corporation for 2016:
| Inventories | January 1 | December 31 |
|---|---|---|
| Materials | $347,000 | $435,000 |
| Work in process | 627,000 | 590,600 |
| Finished goods | 608,200 | 571,000 |
| December 31 | |
|---|---|
| Advertising expense | $ 295,200 |
| Depreciation expense-office equipment | 44,400 |
| Depreciation expense-factory equipment | 55,000 |
| Direct labor | 669,600 |
| Heat, light, and power-factory | 22,480 |
| Indirect labor | 76,750 |
| Materials purchased | 658,600 |
| Office salaries expense | 185,300 |
| Property taxes-factory | 18,200 |
| Property taxes-office building | 32,400 |
| Rent expense-factory | 32,500 |
| Sales | 3,016,000 |
| Sales salaries expense | 419,000 |
| Supplies-factory | 15,900 |
| Miscellaneous costs-factory | 9,600 |
| Required: | |||
| A. | Prepare the 2016 statement of cost of goods manufactured.* | ||
| B. | Prepare the 2016 income statement.*
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