Green Wadi Company reported the following operating expenses for last month:
|
Selling and administrative salaries |
$40,000 |
|
Rent on facilities ( 80% applies to factory operations; the remainder applies to selling and administrative activities) |
$80,000 |
|
purchases of raw materials |
$200,000 |
|
Insurance ( 75% applies to factory operations; the remainder applies to selling and administrative activities) |
$10,000 |
|
Depreciation, sales equipment |
$10,000 |
|
Utilities costs ( 90% applies to factory operations; the remainder applies to selling and administrative activities) |
$60,000 |
|
indirect labor |
$80,000 |
|
direct labor |
$65,000 |
|
depreciation, factory equipment |
$14,000 |
|
maintenance, factory |
$7,000 |
|
Advertising |
$70,000 |
Total sales were $584,000. Inventory balances at the beginning and end of the month were as follows:
|
Begging |
Ending |
|
|
Raw Materials |
18,000 |
43,000 |
|
Work in process |
60,000 |
75,000 |
|
finished goods |
10,000 |
50,000 |
Prepare the income statement for last month.
