W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for $400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips’ accounting records provide the following information:Purchases of raw materials$320,000Beginning materials inventory46,800Ending materials inventory66,800Direct labor200,000Indirect labor40,000Rent, factory building42,000Depreciation, factory equipment60,000Utilities, factory11,900Salary, sales supervisor90,000Commissions, salespersons180,000General administration300,000Beginning work-in-process inventory13,040Ending work-in-process inventory14,940Beginning finished goods inventory80,000Ending finished goods inventory114,100 Required:1.Prepare a statement of cost of goods manufactured.2.Compute the average cost of producing one unit of product in the year.3.Prepare an income statement for external users. 1. Prepare a statement of cost of goods manufactured. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within yourstatement. If an amount is negative, first enter a minus (-) sign.W. W. Phillips CompanyStatement of Cost of Goods ManufacturedFor Last Year123 (Label)710115. 3. Prepare an income statement for external users. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within yourstatement.W. W. Phillips CompanyIncome StatementFor Last Year124 (Label)5 (Label)67

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Description: W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for $400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in fini

Raw materials used = Beginning materials inventory + Purchases of raw materials - Ending materials…

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Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 5PB: Statement of cost of goods manufactured and income statement for a manufacturing company The...

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W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for $400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips’ accounting records provide the following information:

Purchases of raw materials	$320,000
Beginning materials inventory	46,800
Ending materials inventory	66,800
Direct labor	200,000
Indirect labor	40,000
Rent, factory building	42,000
Depreciation, factory equipment	60,000
Utilities, factory	11,900
Salary, sales supervisor	90,000
Commissions, salespersons	180,000
General administration	300,000
Beginning work-in-process inventory	13,040
Ending work-in-process inventory	14,940
Beginning finished goods inventory	80,000
Ending finished goods inventory	114,100

	Required:
1.	Prepare a statement of cost of goods manufactured.
2.	Compute the average cost of producing one unit of product in the year.
3.	Prepare an income statement for external users.

1. Prepare a statement of cost of goods manufactured. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your
statement. If an amount is negative, first enter a minus (-) sign.
W. W. Phillips Company
Statement of Cost of Goods Manufactured
For Last Year
1
2
3 (Label)
7
10
11
5.

3. Prepare an income statement for external users. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your
statement.
W. W. Phillips Company
Income Statement
For Last Year
1
2
4 (Label)
5 (Label)
6
7

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