The Following Information Is Available for the Brown Company for the Month

question 78

Essay

The following information is available for the Brown Company for the month ended 31 July:
$\begin{array}{lr}\text { Direct materials purchased } & \$21000 \\\text { Direct labour (2500 hrs@\$12) } & 30000 \\\text { Indirect labour } & 3000 \\\text { Indirect materials } & 2500 \\\text { Office supplies expense } & 100 \\\text { Factory equipment depreciation } & 2000 \\\text { Office Equipment depreciation } & 750 \\\text { Administrative expenses } & 20000 \\\text { Office utilities } & 75\\\text { Factory utilities } & 200 \\\text { Marketing expense } & 2500 \\\text { Sales revenue } &150000 \\\text { Sales commissions expense } & 1500\end{array}$
$\begin{array}{lrr}&\underline{\text { Beginning }}&\underline{ \text { Endling} }\\\text { Direct materials inventory } & \$ 27000 & \$ 24500 \\\text { Work in process inventory } & 25000 & 29000 \\\text { Finished Goods inventory } & 22000 & 15000\end{array}$

Required:
A. Determine the direct materials used in July.
B. Determine cost of goods manufactured in July.
C. Determine cost of goods sold for July.
D. Prepare an income statement for July. (ignore taxes)

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