The Following Information Is Available for Marks Company at December

question 173

Essay

The following information is available for Marks Company at December 31 2017: $\begin{array} { c c r } \text { 1. Inventory balance } & \text { Beginning of Year } & \text { End of Year } \\ \text { Finished Goods } & \$ 14,000 & \$ 10,000 \\ \text { Work in Process } & 6,000 & 12,000 \\ \text { Raw Materials } & 10,300 & 6,500 \end{array}$

2. Debit postings to Work in Process Inventory during the year were:
$\begin{array}{lr}\text { Direct materials } & \$ 90,000 \\\text { Direct labor } & 60,000 \\\text { Manufacturing overhead applied } & 75,000\end{array}$

3. Sales totaled $\$ 310,000$ for the year. Instructions
(a) Prepare a condensed cost of goods manufactured schedule.
(b) Prepare an income statement for the year through gross profit.

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Definitions:

Interest

The charge for borrowing money, calculated as a percentage of the principal amount.

Cash Dividends

Payments made by a company to its shareholders from its profits or reserves, typically in the form of cash.

Dividends Payable

liabilities representing the amount of dividends declared by a company's board but not yet paid to shareholders.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been received but not yet paid for.