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4. Ehrlich Company had the following inventory balances at the beginning and end of the year:   January 1 December 31 Raw material $60,000 $50,000 Work in process 140,000 180,000 Finished goods 280,000 255,000   During the year, the company purchased $110,000 of raw material and incurred $350,000 of direct labor costs.  Other data: manufacturing overhead incurred, $450,000; manufacturing overhead applied, $460,000  Sales, $1,600,000; Selling and administrative expenses, $97,000; Income tax rate, 30%. Required: A. Prepare a schedule of cost of goods manufactured. B.  Prepare a schedule of goods sold. C. Prepare an income statement.

4. Ehrlich Company had the following inventory balances at the beginning and end of the year:   January 1 December 31 Raw material $60,000 $50,000 Work in process 140,000 180,000 Finished goods 280,000 255,000   During the year, the company purchased $110,000 of raw material and incurred $350,000 of direct labor costs.  Other data: manufacturing overhead incurred, $450,000; manufacturing overhead applied, $460,000  Sales, $1,600,000; Selling and administrative expenses, $97,000; Income tax rate, 30%. Required: A. Prepare a schedule of cost of goods manufactured. B.  Prepare a schedule of goods sold. C. Prepare an income statement.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 6PB: During the year, a company purchased raw materials of $77,321 and incurred direct labor costs of...
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4.

Ehrlich Company had the following inventory balances at the beginning and end of the year:

 

January 1

December 31

Raw material

$60,000

$50,000

Work in process

140,000

180,000

Finished goods

280,000

255,000

 

During the year, the company purchased $110,000 of raw material and incurred $350,000 of direct labor costs.

 Other data: manufacturing overhead incurred, $450,000; manufacturing overhead applied, $460,000

 Sales, $1,600,000;

Selling and administrative expenses, $97,000;

Income tax rate, 30%.

Required:
A. Prepare a schedule of cost of goods manufactured.
B.  Prepare a schedule of goods sold.
C. Prepare an income statement. 

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