(SOLVED)- Australian Aluminum Company a manufacturer of recyclable soft drink cans had


Question Description:

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Australian Aluminum Company. a manufacturer of recyclable soft-drink cans, had the following inventory balances at the beginning and end of the current year:
During the year, the company purchased $600,000 of raw material and spent $960,000 on direct labour. Manufacturing overhead costs were as follows:
Indirect material………………………………….$12,000
Indirect labour……………………………………..22,000
Depreciation on plant and equipment……………110,000
Utilities…………………………………………….23,000
Other………………………………………………35,000
Sales revenue was $2,652,000 for the year. Selling and administrative expenses for the year amount to $264,000. The firm’s tax rate is 40 per cent.
Required
1. Prepare a schedule of cost of goods manufactured.
2. Prepare a schedule of cost of goods sold.
3. Prepare an income statement.

Answer

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