E1-14  The following information is available for Aikman Company

Subject:AccountingPrice: Bought3

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E1-14  The following information is available for Aikman Company.

	Raw materials inventory January 1, 2014 $21,000    2014                 December 31, 2014 $30,000   Work in process inventory 13,500   17,200   Finished goods inventory 27,000   21,000   Materials purchased   $150,000     Direct labor   220,000     Manufacturing overhead   180,000     Sales revenue   910,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Instructions

(a)  Compute cost of goods manufactured.

(b)  Prepare an income statement through gross profit.

(c)   Show the presentation of the ending inventories on the December 31, 2014, balance sheet.

(d)  How would the income statement and balance sheet of a merchandising company be different from Aikman’s financial statements?