Information About Carter Company for the Year Ending December 31,is

question 1

Essay

Information about Carter Company for the year ending December 31,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.
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:

Near-Sourcing

The practice of transferring a business operation or project closer to where it is consumed or where the product is sold, aiming to reduce transportation costs and time.

Intermodal Transportation

The movement of goods in one and the same loading unit or vehicle by successive modes of transport without handling the goods themselves in changing modes.

Contract Carrier

A transportation service provider for hire that enters into an agreement with specific customers to transport goods or passengers.

Push Strategy

A marketing approach where a company "pushes" its products to consumers through advertising and promotion strategies.