INTERMEDIATE ACCOUNTING 3

STATEMENT OF COMPREHENSIVE INCOME

PROBLEM 1

AKATSUKI COMPANY provided the following information for 2019:

Sales 7,500,000
Inventories - January 1
Raw materials 200,000
Goods in process 240,000
Finished goods 360,000
Inventories - December 31
Raw materials 280,000
Goods in process 170,000
Finished goods 300,000
Purchases 3,000,000
Direct labor 950,000
Indirect labor 250,000
Superintendence 210,000
Light, heat and power 320,000
Rent - factory building 120,000
Repair and maintenance - machinery 50,000
Factory supplies used 110,000
Sales salaries 400,000
Advertising 160,000
Depreciation - store equipment 70,000
Office salaries 150,000
Depreciation - office equipment 40,000
Depreciation - machinery 60,000
Sales returns and allowances 50,000
Interest income 10,000
Gain on sale of equipment 100,000
Delivery expenses 200,000
Accounting and legal fees 150,000
Office expenses 250,000
Earthquake loss 300,000
Gain from expropriation of asset 100,000
Income tax expense 320,000

Required:

a. Prepare a statement of Cost of Goods Manufactured.

b. Prepare an Income Statement using the "function of expense" method with supporting notes.
c. Prepare an Income Statement using the "nature of expense" method with supporting notes.
PROBLEM 2

The adjusted trial balance of ANBU COMPANY included the following accounts on December 31, 2019:

Sales 9,750,000
Share of profit of associate 150,000
Other income 300,000
Decrease in inventory of finished goods 250,000
Raw materials and consumables used 3,500,000
Employee benefit expense 1,500,000
Translation gain on foreign operation 300,000
Depreciation 450,000
Impairment loss on property 800,000
Finance costs 350,000
Other expenses 450,000
Income tax expense 900,000
Unealized gain on option contract designated as cash flow hedge 200,000

Required:

Prepare a single statement of comprehensive income for the year ended December 31, 2019.