Ex.

13, King Cost of goods manufactured and sold statement

Raw materials used (Note l) 102,000 Note l: Cost of raw materials used
Direct labor 60,000 Raw materials, beg.
Total prime costs 162,000 Add: Net cost of purchases
Purchase
Factory overhead (Note 2) 102,000 s
Total manufacturing costs 264,000 Freight in
Add: Work in Process, beg. 25,000 Cost of goods
Cost of goods placed in process 289,000 Less: Pur. Dis
Less: Work in process, end 16,000 Pur. Ret
Cost of goods manufactured 273,000 Cost of raw materials avail. F
Add: Finished goods, beg. 15,000 Less: Raw mat. End
Cost of goods available for sale 288,000 Cost of raw mat. Used
Less: Fin. Goods, end 12,000
Cost of goods manufactured and sold 276,000 Note 2: Factory overhead
Fac. Supp.
Income Statement Rep. And Mai
Net sales (Note l) 870,000 Fac. Sal.
Less: Cost of goods manuf. And sold (Schedule l) 276,000 Depr.-
Gross profit 594,000 Total
Add: Other income (Note 2) 4,000
Total 598,000 Note 2: Other income
Less: Operating exp. Interest incom
Selling expenses (Note 3) 202,000
Note 3: Selling
Admin. Expn. (Note 4) 42,000 expenses
Other expenses (Note 5) 7,000 251,000 Advertising
Net operating income 347,000 Sales Sal.
Less: Provision for income tax (32%) 111,040 Freight out
Net income after tax 235,960 Total

Balance
Sheet Note l: Net sa
Par Value: S
Capital Stock, issued, P10 par 140,000 L

Subscribed Capital Stock 100,000 di

Less: Subscriptions rec. 20,000 80,000 N
Stock Dividends to be Issued 40,000 260,000
N
Additional paid-in capital: ex
Donated Capital 10,000

Premium on Capital Stock 6,000

Paid-in capital from treasury stocks 4,000 20,000
Total paid-in capital 280,000
Retained Earnings:
Free (140,000 + 235,960) 375,960
Appropriated for treasury stocks 26,000 401,960
Appraisal Capital 296,000 N
Total 977,960
Treasury Stocks 26,000
Stockholders’ Equity 951,960
Total liabilities and Stockholders’ Eq. 1,631,000