Nexient Company Supplied the Following Data and Information on Inventories

question 92

Essay

Nexient Company supplied the following data and information on inventories at the end of the current year. $$\begin{array} { l r r } & \text { January 1 } & \text { December } 31 \\\text { Materials } & \$ 21,000 & \$ 23,500 \\\text { Work in process } & 17,500 & 8,500 \\\text { Finished goods } & 26,000 & 27,000\end{array}$$ $$\begin{array} { l r } \text { Direct labour } & \$ 40,000 \\\text { Selling expenses } & 31,000 \\\text { Sales revenue } & 400,000 \\\text { Administrative expenses } & 14,500 \\\text { Purchases of raw materials } & 62,000 \\\text { Factory supervision } & 50,000 \\\text { Factory supplies used } & 25,000\end{array}$$ Required: Prepare an income statement of Nexient Company for the current year

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Definitions:

Medicare Withholding

A portion of an employee's wages that is deducted and sent to the government to contribute to the Medicare program.

Social Security Withholding

A mandatory process where employers deduct part of an employee's salary to contribute towards the United States Social Security program, aimed at providing benefits for retirees, disabled workers, and survivors.

Federal Income Tax Withholding

The process by which employers withhold a portion of employees' wages to pay directly to the government as part of the employees' federal income tax obligations.

Withholding Allowance

A deduction that employees can claim to reduce the amount of federal income tax withheld from their paycheck.