Information for Stanton, Inc

question 211

Essay

Information for Stanton, Inc., as of December 31 follows. Prepare a schedule of cost of goods manufactured for the year ended December 31.
$\begin{array} { l | l } \text { Administrative salaries } & \$ 35,000 \\\hline \text { Depreciation of factory equipment } & 25,000 \\\hline \text { Depreciation of delivery vehicles } & 6,000 \\\hline \text { Direct labor } & 68,000 \\\hline \text { Factory supplies used } & 9,000 \\\hline \text { Finished goods inventory, January 1 } & 57,000 \\\hline \text { Finished goods inventory, December 31 } & ? \\\hline \text { Factory insurance } & 15,500 \\\hline \text { Interest expense } & 12,000 \\\hline \text { Factory utilities } & 14,000 \\\hline \text { Factory maintenance } & 7,500 \\\hline \text { Raw materials inventory, January 1 } & 5,000 \\\hline \text { Raw materials inventory, December 31 } & 4,000 \\\hline\end{array}$
$$\begin{array} { l | l } \hline \text { Raw material purchases } & 125,000 \\\hline \text { Rent on factory building } & 25,000 \\\hline \text { Repairs of factory equipment } & 11,500 \\\hline \text { Sales comrnissions } & 37,500 \\\hline \text { Work in Process inventory. January 1 } & 3,500 \\\hline \text { Work in Process inventory. December 31 } & 2,700\end{array}$$

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Definitions:

Government Spending

Expenditures made by the government for its operations, programs, and public services.

Taxes

Mandatory contributions to state revenue, levied by the government on workers' income, business profits, or added to the cost of some goods, services, and transactions.

National Income

The total amount of money earned within a country from production and services over a specific time period.

Opportunity Cost

Dismissing potential benefits from other possible choices by focusing on one.