PPT Problem – Chapter 02

M/s Comet Computer Corporation had the following data:

Raw Material inventory, January 1…………………………………………………………$ 6,000

Raw Material inventory, December 31……………………………………………………$ 5,020

Purchase of Raw Material ………………………………………………………………… $ 134,000

Direct Labour…………………………………………………………………………………… $ 50,000

Manufacturing Overhead:

Indirect Material……………………………………………………………………………. $ 10,000

Indirect Labour……………………………………………………………………………….. $ 40,000

Depreciation on factory……………………………………………………………………..$ 90,000

Depreciation on equipment…………………………………………………………… . $ 70,000

Utilities …………………………………………………………………………………………… $ 15,000

Insurance……………………………………………………………………………………….. $ 5,000

WIP inventory, January 1………………………………………………………………………. $ 120

WIP inventory, December 31…………………………………………………………………. $ 100

Finished Goods inventory, January 1…………………………………………………… . $ 200

Finished Goods inventory, December 31……………………………………………… . $ 190

Sales Revenue……………………………………………………………………………………… $ 700,000

Selling & Administrative expenses………………………………………………………… $ 174,490

Income Tax…………………………………………………………………………………………….$ 30,000

You are required to find out Cost of Goods Manufactured, Cost of Goods Sold and Net Income of Ms
Computer Corporation