Information About Mobile Enterprises for the Year Ending December 31

question 102

Essay

Information about Mobile Enterprises for the year ending December 31, 2018, is as follows:
$\begin{array}{lr}\text { Sales } & \$ 300,000 \\\text { Selling and administrative expenses } & 18,000 \\\text { Net income } & 8,000\\\\\text { Beginning inventories: }\\\text { Direct materials } & 20,000 \\\text { Work in process } & 18,000 \\\text { Finished goods } & 62,000\end{array}$
Ending direct materials is 20 percent larger than beginning direct materials. Ending work in process is half of the beginning work in process. Ending finished goods increased by $8,000 during the year. Prime costs and conversion costs are 70 percent and 60 percent of total manufacturing costs added, respectively. Materials purchases are $113,200.
Required:
a.Prepare a statement of cost of goods manufactured.
b.Prepare an income statement.Note: Find the numbers for the income statement first.

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Definitions:

Fixed Action Pattern

Innate, pre-programmed responses triggered by specific stimuli in animals.

Sound Frequency

The number of vibrations or cycles per second of a sound wave, measured in hertz (Hz), determining the pitch of the sound.

Male Flies

Refers to the male specimens of flies, frequently studied in research for understanding genetics, behavior, and disease transmission.

Stimulus Filtering

The mechanism by which an organism discriminates between important and irrelevant stimuli in its environment to focus on survival-relevant information.