1.

Statement of cost of goods manufactured

Direct Materials Used:

Direct material inventory, January 2019 $11,000

direct materials purchase $77,000

Less: Direct materials inventory, December 2019 -$15,400

Less: indirect material -$4,400

Direct material used $68.200

Direct Labor $198,000

Manufacturing overhead:

Indirect labor $11,000

Depreciation of factory equipment $16.500

Depreciation of factory buildings $12.100

Total manufacturing overhead $39.600

Total manufacturing cost : 305.800

Add: work in process, January 2019 $34,100

Less: work in process, December 2019 -$25,300

Cost of goods manufactured $314.600

Haverhill Company
Income statement
For the year ended December 31 2019
Sales $440,000

Cost of good sold:

Finished goods inventory, January 1 $53,900

 Cost of goods manufactured $314,600

Cost of goods available for sale $368,500

Less: Finished goods inventory, December 31 -$48,400

Cost of goods sold $320.100

Gross margin (Sales – Cost of goods sold) $119,900

Operating expenses:

Administrative building $45,100

Marketing costs $27.500

Total operating expanse -$72.600

Income from operations 47.300