accounting

Assessment Document 2021-2022 Page 2 of 3

Question 1: (80 points)

General Electrics provided the following information for 2020 :

During the year, raw material purchased amounted to $110 000, direct labor cost was

$330 000 and overheads costs was $439 000. GE’s sales revenues totaled $1 550 000 and they

had $85 000 selling and administrative expenses. GE’s income tax rate is 20%.

Required:

A. Construct a schedule to calculate cost of goods manufactured. (60pts)

B. Construct a statement to calculate cost of goods sold. (20pts)

Beginning inventory

Raw material $56,000

Work in process 120,000

Finished goods 270,000

Ending inventory

Raw material $40,000

Work in process 165,000

Finished goods 240,000