Information from the Records of the Navaho Industries for the Month

question 107

Essay

Information from the records of the Navaho Industries for the month of July is as follows:
$$\begin{array} { l r } \text { Purchases of direct materials } & 24,000 \\\text { Indirect labor } & 6,500 \\\text { Direct labor } & 13,200 \\\text { Depreciation on factory machinery } & 3,600 \\\text { Sales } & 75,300 \\\text { Selling and administrative expenses } & 8,900 \\\text { Rent on factory building } & 8,400\end{array}$$
$$\begin{array} { l r r } \text { Irventories: } & \text { July 1 } & \text { July 31 } \\\text { Direct materials } & \$ 8 , 0 0 0 & \$ 6 , 7 0 0 \\\text { Work-in-process } & 1,100 & 1,600 \\\text { Finished goods } & 9,000 & 6,800\end{array}$$
Required:
(a) Prepare a statement of cost of goods manufactured and sold for the month of July.
(b) Prepare a gross margin income statement for the month of July.

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Definitions:

Real GDP

The calculation of a nation's total economic production factoring in adjustments for price fluctuations, either inflationary or deflationary.

Growth Rate

The measure of the increase in a particular variable, such as GDP or population size, over a specific period of time, usually expressed as a percentage.

Nominal GDP

The gross domestic product measured in current market prices, without adjustment for inflation.

Real GDP

The total market value of all final goods and services produced in an economy in a year, adjusted for inflation, reflecting the actual economic output.