Question

M Prepare in good presentation statement of income for the year Millville Company: Inventories: July 1, 19A June 30, 19B Finished goods.......... 10.000 $28,000 Work in process......... 304,000 36,000 Materials ........... 40,000 48,000 Sales discounts. Purchase discounts ................ Sales ............... Purchase returns and allowances ...... Depreciation-factory machinery ...... Factory insurance. ...... Freight out .......... Other factory expenses .......... Bond interest expense ........... Sales salaries................ Freight in............... Direct factory labor ........ Materials purchases ....... Advertising expense........ $ 8,000 3,200 1,800,000 20,000 160,000 50,000 8,000 16,000 50,000 100,000 12,000 800,000 400,000 12,000

Answer 1

INCOME STATEMENT
Particulars	Amount	Amount	Amount
Sales Revenue		$ 18,00,000
Less: Sales Discount		$          8,000
Net Revenue (A)			$    17,92,000
Less : Cost of Goods Sold
Beginning inventory	$         10,000
Add: Purchase	$     4,00,000
Add: Freight In	$         12,000
Less: Purchase Discount	$           3,200
Less: Purchase return and allwoances	$         20,000
Less: Inventory , December 31 2018	$         28,000
		$    3,70,800
Manufacturing Expenses
Depreciation - Factory Machinary	$     1,60,000
Factory insurance	$         50,000
Other Factory expenses	$         16,000
Direct Factory labor	$     8,00,000
		$ 10,26,000
Manufacturing cost			$    13,96,800
add: Opening Work-in-process,			$          30,000
Total costs in process			$    13,96,800
Less: Ending Work-in-process			$          36,000
Cost of goods manufactured			$    13,60,800
Add: Finished Goods inventory ,			$          40,000
Total Cost available for Sold			$    14,00,800
Less: Closing Stock of Finished Goods			$          48,000
Total Manufacturing cost			$    13,92,800
Operating Expenses
Sales Salaries		$    1,00,000
Freight Out		$          8,000
Bond interest Expenses		$        50,000
			$       1,58,000
Total Cost (B)			$    15,50,800
Net Income (A-B)			$       2,41,200