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Selling exp.........................215,000 Purchase of Raw Materials...........260,000 Direct Labor....................... ????? Admin Exp...........................160,000 Manufac. OH applied to WIP......... 340,000 Tot actual MOH costs............... 350,000 Inventory balances beginning and end of the year were as follows: Raw materials.......... 50,0000 ~ 40,000 WIP........................ ????? ~ 33,000 Finished Goods......... 30,000 ~ ???? The total manufacturing costs for the year were $675,000; the COG available for sale totaled $720,000; the unadjusted COGS totaled $665,000; and the net operating income was $35,000. The company's over-applied or under-applied OH is closed entirely to COGS. REQUIRED: Prepare schedules of COGM and COGS and an income statement (Hint: prepare the income statement and schedule of COGS first followed by the schedule of COGM.)
Explain how the amount of tax expense for calender 2008 andthe amount of taxes payable (if any) at December 31, 2008, can bedetermined.
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