Reference no: EM132524208

The following data refer to Nani's Fashions for the current year:

Sales Revenues $475,000

Work in process inventory, 31 December 15,000

Work in process inventory, 1 January 20,000

Selling and administrative expenses 75,000

Income tax expense 45,000

Purchase of raw materials 90,000

Raw materials inventory, 31 December 12,500

Raw material inventory. 1 January 20,000

Direct labour 100,000

Electricity: plant 20,000

Depreciation plant and equipment 30,000

Finished goods inventory, 31 December 25,000

Finished goods inventory, 1 January 10,000

Indirect material 5,000

Indirect labour 7,500

Other manufacturing overhead 40,000

Required:

Question 1: Prepare the schedule of cost of goods manufactured for Nani's fashion.

Question 2: Prepare the schedule of cost of goods sold for Nani's Fashions and explain the information provided by the schedule of cost of goods sold.

Question 3: Prepare an income statement for the current year.