Principles of Cost Accounting: P1-4 The adjusted trial balance of Kokomo Furniture Company

Principles of Cost Accounting

P1-4 Statement of cost of goods manufactured; income statement; balance sheet
The adjusted trial balance of Kokomo Furniture Company on November 30, the end of its first month of operation, is as follows:
Kokomo Furniture Company
Trial Balance
November 30, 2013
Cash 21,800
Accounts Receivable 16,200
Finished Goods 13,900
Work in Process -
Materials 7,400
Building 300,000
Accumulated depreciation - Building 3,000
Machinery and Equipment 88,000
Accumulated depreciation - Mach. And Equip. 2,200
Accounts Payable 8,900
Payroll -
Capital stock 422,550
Sales 68,300
Cost of goods sold 42,450
Factory overhead -
Selling and Administrative Expense 15,200
$504,950 $504,950

The general ledger reveals the following additional data:
a. There were no beginning inventories.
b. Materials purchases during the period were $33,000.
c. Direct labor cost was $18,500.
d. Factory overhead costs were as follows:
Indirect materials 1,400
Indirect labor 4,300
Depreciation - building 3,000
Depreciation - machinery and equipment 2,200
Utilities 2,750
$13,650
Required:
1. Prepare a statement of cost of goods manufactured for the month of November.
2. Prepare an income statement for the month of November. (Hint: Check to be sure that your figure for Cost of Goods Sold equal the amount given in the trial balance).
3. Prepare a balance sheet as of November 30. (Hint: Do not forget Retained Earnings).
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