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.

Distinguish between International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).

Explain the role and importance of transfer pricing in multinational corporations.

Know the mechanisms of international payment and credit systems.

Identify tax havens and understand their impact on business and investments.