Prepare the income statement using the production method

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Reference no: EM132849140

Problem - Rohit's Reflections produces windows. The company purchases 4 m squares of glass and makes windows and sliding doors. The offcuts are finely sliced into glass pebbles, a byproduct.

In the year, Rohit processes 2,650 squares of glass. Each square of glass costs $25. Each square produces 4 windows, 5 door and 5 litres of glass pebbles. There is no beginning inventory.

Sales data is as follows:

 

Number sold

Price

Windows

4,750

26

Sliding doors

2,600

42

Litres of pebbles

1,400

1.2

Required - Using the Production method, prepare the income statement, an analysis of inventroriable costs and the journal entries to record WIP, Finished goods and Sales for both the main products and the byproduct.

Reference no: EM132849140

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