(Solved by Humans)-PROBLEM 2–26 Income Statement; Schedule of Cost of Goods Manufactured [LO1, LO2, LO3, LO4] The...

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  PROBLEM 2–26 Income Statement; Schedule of Cost of Goods Manufactured [LO1, LO2, LO3, LO4] The following information was taken from the accounting records of Mitchell Company for last year:   Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 140,000 Raw materials inventory, January 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000 Raw materials inventory, December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 Utilities, factory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000 Direct labour cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000 Depreciation, factory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162,000 Purchases of raw materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 Insurance, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 Supplies, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000 Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000 Indirect labour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 Maintenance, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,000 Work in process inventory, January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180,000 Work in process inventory, December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 Finished goods inventory, January 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260,000 Finished goods inventory, December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,000   Management wants to organize these data into a better format so that financial statements can be prepared for the year. Required: 1.              Prepare a schedule of cost of goods manufactured as in Exhibit 2–4. 2.              Compute the cost of goods sold. 3.              Using data as needed from (1) and (2) above, prepare an income statement. 4.              Assuming production of finished and semi-finished goods amounted to 412,500 units for the past year, calculate the cost components of the ending finished goods inventory of 55,176 units. (Hint: The categories of costs in the ending inventory are the same as the total manufacturing costs; only the amounts are different.)     www.tex-cetera.com