The Following Information Applies to the Johnson Tools Company for the Year

question 73

Essay

The following information applies to the Johnson Tools Company for the year. $\begin{array}{|l|r|}\hline \text { Factory Rent } & \$ 330,000 \\\hline \text { Direct Materials Inventory, Beginning } & 96,000 \\\hline \text { Direct Materials Inventory, Ending } & 87,000 \\\hline \text { Direct Materials Purchases } & 654,000 \\\hline \text { Direct Labor-Wages } & 425,000 \\\hline \text { Indirect Labor-Wages } & 28,000 \\\hline \text { Finished Goods Inventory, Beginning } & 25,000 \\\hline \text { Finished Goods Inventory, Ending } & 44,000\\\hline\text { Indirect Materials } & 66,000 \\\hline \text { Plant Utilities } & 40,000 \\\hline \text { General and Administrative } & 101,350 \\\hline \text { Work-in-Process Inventory, Beginning } & 27,000 \\\hline \text { Work-in-Process Inventory, Ending } & 33,000 \\\hline \text { Marketing Expenses } & 225,000 \\\hline \text { Sales Revenue } & 2,550,000\\\hline\end{array}$ Required:
Prepare a statement of cost of goods manufactured and an income statement for the year.

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Definitions:

Oxygen

A chemical element with symbol O and atomic number 8, essential for the respiration of most living organisms and for combustion.

Uterine Wall

The muscular wall comprising the outer layer of the uterus, which expands significantly during pregnancy to accommodate a growing fetus.

Embryo

An early stage of development in multicellular organisms following fertilization, before developing into a fetus.

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, marking the beginning of a human's genetic makeup.