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:

Collective Body

A group of individuals or entities united with a common purpose or function, often working together towards shared goals.

Culture

A society's shared and socially transmitted ideas, values, and perceptions that are used to make sense of experience and generate behavior and are reflected in that behavior.

Reality

The state or quality of being actual, true, or genuine, as opposed to what is imagined, false, or fictitious.

Sacred

Regarded with great respect and reverence by a particular religion, culture, or group of people.