Canton Ltd. manufactures handbags. Selected account balances for the year ended December 31, 2012, are presented below:
Amortization-factory………………………………….. $ 28,500
Beginning direct materials inventory…………………….. 13,200
Beginning finished goods inventory………………………65,800
Beginning work-in-process inventory……………………. 24,800
Direct labor……………………………………………… 88,200
Direct material purchases………………………………… 98,200
Ending direct materials inventory…………………………16,200
Ending finished goods inventory…………………………52,500
Ending work-in-process inventory…………………………35,200
Factory insurance……………………………………………8,400
Factory maintenance……………………………………….25,300
Factory utilities…………………………………………….14,500
General and administrative expenses………………………62,800
Indirect labor……………………………………………..19,500
Indirect materials……………………………………………7,800
Sales………………………………………………………482,000
Selling expenses……………………………………………70,400
REQUIRED
A. Prepare a schedule of cost of goods manufactured.
B. Calculate the prime cost and conversion cost.
C. Prepare a schedule of cost of goods sold.
D. Prepare a single-step income statement for Canton Ltd. for the year.
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