Information about Mobile Enterprises for the year ending December 31, 2016, is as follows: Ending direct materials is 20 percent larger than beginning direct materials. Ending work in process is half of the beginning work in process. Ending finished goods increased by $8,000 during the year. Prime costs and conversion costs are 70 percent and 60 percent of total manufacturing costs added, respectively. Materials purchases are
$113,200.
Required:
a. Prepare a statement of cost of goods manufactured.
b. Prepare an income statement.
Note: Find the numbers for the income statement first.

Question

Information about Mobile Enterprises for the year ending December 31, 2016, is as follows:  Ending direct materials is 20 percent larger than beginning direct materials. Ending work in process is half of the beginning work in process. Ending finished goods increased by $8,000 during the year. Prime costs and conversion costs are 70 percent and 60 percent of total manufacturing costs added, respectively. Materials purchases are
$113,200.
Required: 
a. Prepare a statement of cost of goods manufactured.
b. Prepare an income statement.
Note: Find the numbers for the income statement first.

Quizplus · Accepted Answer

The Answer of Information about Mobile Enterprises for the year ending December 31, 2016, is as follows:  Ending direct materials is 20 percent larger than beginning direct materials. Ending work in process is half of the beginning work in process. Ending finished goods increased by $8,000 during the year. Prime costs and conversion costs are 70 percent and 60 percent of total manufacturing costs added, respectively. Materials purchases are
$113,200.
Required: 
a. Prepare a statement of cost of goods manufactured.
b. Prepare an income statement.
Note: Find the numbers for the income statement first.

Information About Mobile Enterprises for the Year Ending December 31