The Following Information Has Been Extracted from the Records of Haverhill

question 25

Essay

The following information has been extracted from the records of Haverhill Company: $\begin{array}{lr}\text { Sales } & £ 400,000 \\\text { Purchases of raw materials } & 70,000 \\\text { Indirect labour } & 10,000 \\\text { Indirect materials } & 4,000 \\\text { Depreciation of factory equipment } & 15,000 \\\text { Depreciation of factory buildings } & 11,000 \\\text { Depreciation of admini strative building } & 41,000\\\text { Marketing costs } & 25,000 \\\text { Direct labour } & 180,000 \\\text { Raw material s inventory, } 12-31-11 & 14,000 \\\text { Work in progress, } 1-1-11 & 31,000 \\\text { Raw materials inventory, } 1-1-11 & 10,000 \\\text { Work in progress, } 12-31-11 & 23,000 \\\text { Finished goods inventory, } 1-1-11 & 49,000 \\\text { Finished goods inventory, } 12-31-11 & 44,000\end{array}$
a.Prepare a statement of cost of goods manufactured.
b.Prepare an income statement for the Haverhill Company for the year ending December 31, 2011.

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Definitions:

Money Income

The total amount of monetary earnings received by an individual or household in a specific period, including wages, salaries, and other forms of income.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, helping to illustrate preferences and the concept of utility.

Budget Line

A visual depiction of every combination of two items that can be bought within a specified budget at constant prices.

Costs More

Refers to an increase in financial expenditure or the necessity to spend more money on a specific item or service.