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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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[The following information applies to the questions displayed below.]
Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the
beginning and end of 20x1.
Inventory Classification
Raw material
January 1, 20x1
$ 60,000
December 31, 20x1
$ 70,000
Work in process
Finished goods
120,000
150,000
115,000
165,000
During 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing
overhead costs were as follows:
$ 10,000
25,000
Indirect material
Indirect labor
Depreciation on plant and equipment
100,000
Utilities
25,000
Other
30,000
Sales revenue was $1,105,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The
firm's tax rate is 40 percent.
3. Prepare an income statement.
* Answer is not complete.
ALEXANDRIA ALUMINUM COMPANY
Income Statement
For the Year Ended December 31, 20x1
Sales revenue
O$ 1,105,000 O
Less: Cost of goods sold
(820,000) O
Gross margin
285.000 O
Selling and administrative expenses
(110,000) O
Income before taxes
175,000 X
Income tax expense
220,000
Income tax expense
105,000 x
Missing
Missing
$
115,000](https://content.bartleby.com/qna-images/question/32c816db-ee7e-4844-a1b6-f5ccc9cc7cc9/f0f8e258-a1b5-4606-ad15-b4ee67e4e9f6/p2s98u2_thumbnail.png)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the
beginning and end of 20x1.
Inventory Classification
Raw material
January 1, 20x1
$ 60,000
December 31, 20x1
$ 70,000
Work in process
Finished goods
120,000
150,000
115,000
165,000
During 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing
overhead costs were as follows:
$ 10,000
25,000
Indirect material
Indirect labor
Depreciation on plant and equipment
100,000
Utilities
25,000
Other
30,000
Sales revenue was $1,105,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The
firm's tax rate is 40 percent.
3. Prepare an income statement.
* Answer is not complete.
ALEXANDRIA ALUMINUM COMPANY
Income Statement
For the Year Ended December 31, 20x1
Sales revenue
O$ 1,105,000 O
Less: Cost of goods sold
(820,000) O
Gross margin
285.000 O
Selling and administrative expenses
(110,000) O
Income before taxes
175,000 X
Income tax expense
220,000
Income tax expense
105,000 x
Missing
Missing
$
115,000
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