Incime Statement 31-Dec-10 Net Sales Cost of Goods Sold Direct Materials Materials Inventory, Dec.

31, 2009 Materials Purchased Total Materials Availabble Less: Materials Inventory, Dec. 31, 2010 Direct Materias Used Direct Labor Manufacturing Overhead Applied Total Manufacturing Cost Add: Work in Process, Dec. 31 2009 Total Cost of Goods Placed in Process Less: Work in Process, Dec. 31 2010 Cost of Goods Manufatured Add: Finished Goods, December 31, 2009 Total Good Available for Sale Less: Finished Goods, Dec. 31, 2010 Cost of Goods Sold Add: Underapplied Overhead for Year Cost of Good Sold (Adjusted) Gross Profit Operating expenses Selling Expenses Administratice Expenses Total Operating Expenses Net Income Before Tax

JMG Company Statement of Financial Position December 31. 2010

ASSETS Cash Accounts Receivable Finished Goods Work in Process Materials Prepaid Expense PPE Total Assets

(LIABILITIES AND EQUITY ) Current Liabilities Share capital Retained earnings

Total Liabilities and Equity

JMG Company Incime Statement 31-Dec-10 Net Sales Cost of Goods Sold Direct Materials Materials Inventory, Dec. 31, 2009 Materials Purchased 120,000.00

8,000.00 30,000.00

Total Materials Availabble 38,000.00 Less: Materials Inventory, Dec. 31, 2010 4,000.00 Direct Materias Used Direct Labor Manufacturing Overhead Applied Total Manufacturing Cost Add: Work in Process, Dec. 31 2009 Total Cost of Goods Placed in Process Less: Work in Process, Dec. 31 2010 Cost of Goods Manufatured Add: Finished Goods, December 31, 2009 Total Good Available for Sale Less: Finished Goods, Dec. 31, 2010 Cost of Goods Sold Add: Underapplied Overhead for Year Cost of Good Sold (Adjusted) Gross Profit Operating expenses Selling Expenses Administratice Expenses Total Operating Expenses Net Income Before Tax

34,000.00 18,000.00 18,000.00 70,000.00 4,000.00 74,000.00 2,000.00 72,000.00 12,000.00 84,000.00 8,000.00 76,000.00 4,000.00 80,000.00 40,000.00

12,000.00 18,000.00 30,000.00 10,000.00