80.2K

Verified Solution

Link Copied!

The following information is available for The NewQuest Corporation for 2016:

Inventories

..............January 1...December 31

Materials $346,000 $436,600

Work in process 625,200 590,200

Finished goods 608,400 573,500

December 31

Advertising expense $ 294,800

Depreciation expense-office equipment 43,920

Depreciation expense-factory equipment 55,720

Direct labor 668,800

Heat, light, and power-factory 22,280

Indirect labor 77,250

Materials purchased 659,000

Office salaries expense 185,100

Property taxes-factory 15,300

Property taxes-office building 33,000

Rent expense-factory 32,700

Sales 3,014,000

Sales salaries expense 419,000

Supplies-factory 15,000

Miscellaneous costs-factory 9,100

Required:

A. Prepare the 2016 statement of cost of goods manufactured.*

B. Prepare the 2016 income statement.*

* Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. Enter all amounts as positive numbers.

Amount Descriptions:

Advertising expense

Cost of direct materials used

Cost of finished goods available for sale

Cost of goods manufactured

Cost of goods sold

Cost of materials available for use

Depreciation expense-factory equipment

Depreciation expense-office equipment

Direct labor

Finished goods inventory, December 31, 2016

Finished goods inventory, January 1, 2016

Gross profit

Heat, light, and power-factory

Indirect labor

Materials inventory, December 31, 2016

Materials inventory, January 1, 2016

Miscellaneous cost-factory

Net income

Office salaries expense

Property taxes-factory

Property taxes-office building

Purchases

Rent expense-factory

Sales

Sales salaries expense

Supplies-factory

Total manufacturing costs incurred

Total operating expenses

Work in process inventory, December 31, 2016

Work in process inventory, January 1, 2016

Answer & Explanation Solved by verified expert

See Answer