Nexient Company Supplied the Following Data and Information on Inventories

question 91

Essay

Nexient Company supplied the following data and information on inventories at the end of the current year.
$$\begin{array} { l r r } & \text { January 1 } & \text { December } 31 \\\text { Materials } & \$ 21,000 & \$ 23,500 \\\text { Work in process } & 17,500 & 8,500 \\\text { Finished goods } & 26,000 & 27,000\end{array}$$ Required: Prepare an income statement of Nexient Company for the current year
$$\begin{array} { l r } \text { Direct labour } & \$ 0,000 \\\text { Selling expenses } & 31,000 \\\text { Sales revenue } & 400,000 \\\text { Administrative expenses } & 14,500 \\\text { Purchases of raw materials } & 62,000 \\\text { Factory supervision } & 50,000 \\\text { Factory supplies used } & 25,000\end{array}$$

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Definitions:

Risk Of Loss

The potential that an asset or investment will decrease in value or become entirely worthless.

Passage Of Title

The transfer of ownership rights from the seller to the buyer in a transaction.

Insurable Interest

A stake or financial interest in an item or person that allows the owner to purchase insurance against risks.

Pressure Washer

A mechanical device that uses high-pressure water spray to clean surfaces, removing dirt, grime, and other materials.