Reconstruct Financial Statements San Ysidro Company manufactures hiking equipment. The company’s


Question Description:

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Reconstruct Financial Statements San Ysidro Company manufactures hiking equipment. The company’s administrative and manufacturing operations share the company’s one building. Eighty percent of the building is used for manufacturing and the remainder is used for administrative activities. Indirect labor is 8 percent of direct labor. The cost accountant at San Ysidro has compiled the following information for the year ended December 31: <> A B C 1 Administrative salaries $ 192,000 2 Attorney fees to settle zoning dispute 22,960 3 Building depreciation (manufacturing portion only) 181,440 4 Cost of goods manufactured 2,776,760 5 Direct materials inventory, December 31 248,000 6 Direct materials purchased during the year 1,008,000 7 Direct materials used 1,069,880 8 Distribution costs 4,480 9 Finished goods inventory, January 1 224,000 10 Finished goods inventory, December 31 252,000 11 Insurance (on plant machinery) 53,200 12 Maintenance (on plant machinery) 33,880 13 Marketing costs 103,600 14 Other plant costs 82,160 15 Plant utilities 104,160 16 Sales revenue 4,550,000 17 Taxes on manufacturing property 38,800 18 Total (direct and indirect) labor 1,209,600 19 Work-in-process inventory, January 1 72,520 20 Work-in-process inventory, December 31 68,880 21 Required Prepare a cost of goods manufactured and sold statement and an income statement.

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