Bubba Manufacturing Company provided the following information for the fiscal year to June 30, 2020: Inventories 01/07/2019 30/06/2020 Direct Materials $72,000 $65,000 Work-in-Process 107,000 128,000 Finished Goods 149,500 141,700 Other information: Office cleaner’s wages 4,500 Sales Revenue 1,031,000 Raw materials purchased 235,000 Factory wages 239,700 Indirect materials 23,500 Delivery truck driver’s wages 15,400 Indirect labor 9,500 Depreciation on factory plant & equipment 32,000 Insurance1 60,000 Depreciation on delivery truck 7,250 Utilities2 118,750 Administrative salaries 41,250 Special Design Costs 5,000 Selling expenses 9,000 Sales Comm ission 2% of gross profit 1 Of the total insurance, 66⅔% relates to the factory facilities & 33⅓% relates to general & administrative costs. 2 Of the total utilities, 80% relates to the manufacturing facilities & 20% relates to the office area. B. How does the format of the income statement for a manufacturing entity differ from the income statement of a merchandising entity?
Bubba Manufacturing Company provided the following information for the fiscal year to
June 30, 2020:
Inventories 01/07/2019 30/06/2020
Direct Materials $72,000 $65,000
Work-in-Process 107,000 128,000
Finished Goods 149,500 141,700
Other information:
Office cleaner’s wages 4,500
Sales Revenue 1,031,000
Raw materials purchased 235,000
Factory wages 239,700
Indirect materials 23,500
Delivery truck driver’s wages 15,400
Indirect labor 9,500
Depreciation on factory plant & equipment 32,000
Insurance1 60,000
Depreciation on delivery truck 7,250
Utilities2 118,750
Administrative salaries 41,250
Special Design Costs 5,000
Selling expenses 9,000
Sales Comm
ission 2% of gross profit
1 Of the total insurance, 66⅔% relates to the factory facilities & 33⅓% relates to general
& administrative costs.
2 Of the total utilities, 80% relates to the manufacturing facilities & 20% relates to the
office area.
B. How does the format of the income statement for a manufacturing entity differ from the income statement of a merchandising entity?
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