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Use the information in Exercise to prepare an income statement for Delray Mfg. (a manufacturer). Assume that its cost of goods manufactured is $534,390.
In exercise
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,250,000
Raw materials inventory, Dec. 31, 2014 . . . . . 37,000
Work in process inventory, Dec. 31, 2014 . . . 53,900
Finished goods inventory, Dec. 31, 2014 . . . . 62,750
Raw materials purchases . . . . . . . . . . . . . . . . . 175,600
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . 225,000
Factory computer supplies used . . . . . . . . . . . 17,840
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . 47,000
Repairs—Factory equipment . . . . . . . . . . . . . . $ 5,250
Rent cost of factory building . . . . . . . . . . . . . . 57,000
Advertising expense . . . . . . . . . . . . . . . . . . . . . 94,000
General and administrative expenses . . . . . . . . 129,300
Raw materials inventory, Dec. 31, 2015 . . . . . . 42,700
Work in process inventory, Dec. 31, 2015 . . . 41,500
Finished goods inventory, Dec. 31, 2015 . . . . . 67,300
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