The Following Data (In Thousands of Dollars)have Been Taken from the Accounting

question 85

Essay

The following data (in thousands of dollars)have been taken from the accounting records of Larmont Corporation for the year just completed:
$\begin{array}{|l|r|}\hline \text { Sales } & \$ 990 \\\hline \text { Purchases of raw materials* } & \$ 100 \\\hline \text { Direct labour } & \$ 240 \\\hline \text { Indirect labour } & \$ 100 \\\hline \text { Indirect material } & \$ 10 \\\hline \text { Other Factory Overhead } & \$ 100 \\\hline \text { Administrative expenses } & \$ 100 \\\hline \text { Selling expenses } & \$ 140 \\\hline \text { Raw materials inventory, beginning* } & \$ 20 \\\hline \text { Raw materials inventory, ending* } & \$ 80 \\\hline \text { Work in process inventory, beginning } & \$ 50 \\\hline \text { Work in process inventory, ending } & \$ 30 \\\hline \text { Finished goods inventory, beginning } & \$ 160 \\\hline \text { Finished goods inventory, ending } & \$ 150 \\\hline\end{array}$
*Raw Materials Inventory consist of both direct and indirect materials.
Required:
(a.)Prepare a schedule of cost of goods manufactured in good form.
(b.)Compute the cost of goods sold.
(c.)Using data from your answers above as needed,prepare an income statement in good form.

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Definitions:

Semi-annual dividend

A payment made to shareholders from a company's earnings, distributed twice a year.

Perpetual preferred share

A type of preferred stock that has no fixed maturity date, often providing dividends indefinitely.

Compounded semi-annually

The method of computing interest by taking into account both the original amount of money deposited or lent and the interest that has been earned on that amount from past periods, with the calculation occurring semi-annually.

Perpetuity

A financial instrument that provides endless payments of a fixed amount of money, often used to model the value of stable companies.