Vargas Corporation has the following cost records for June 2011.
Indirect factory labor $ 4,500 Factory utilities $ 400
Direct materials used 20,000 Depreciation, factory equipment 1,400
Work in process, 6/1/11 3,000 Direct labor 30,000
Work in process, 6/30/11 3,800 Maintenance, factory equipment 1,800
Finished goods, 6/1/11 5,000 Indirect materials 2,200
Finished goods, 6/30/11 7,500 Factory manager’s salary 3,000
Instructions
(a) Prepare a cost of goods manufactured schedule for June 2011.
(b) Prepare an income statement through gross profit for June 2011 assuming net sales are $87,100.