Problem 1
The following cost and inventory data are taken from the accounting records of Tana Company for the year just completed:
\begin{tabular}{|l|r|}
\hline Costs incurred: \\
\hline Direct labor cost & \( \mathrm{Br} 70,000 \) \\
\hline Purchases of raw materials & \( \mathrm{Br} 118,000 \) \\
\hline Indirect labor & \( \mathrm{Br} 30,000 \) \\
\hline Maintenance, factory equipment & \( \mathrm{Br} 6,000 \) \\
\hline Advertising expense & \( \mathrm{Br} 90,000 \) \\
\hline Insurance, factory equipment & \( \mathrm{Br} 800 \) \\
\hline Sales salaries & \( \mathrm{Br} 50,000 \) \\
\hline Rent, factory facilities & \( \mathrm{Br} 20,000 \) \\
\hline Supplies & \( \mathrm{Br} 4,200 \) \\
\hline Depreciation, office equipment & \( \mathrm{Br} 3,000 \) \\
\hline Depreciation, factory equipment & \( \mathrm{Br} 19,000 \) \\
\hline
\end{tabular}
\begin{tabular}{|l|l|l|}
\hline \multicolumn{1}{|c|}{ Inventories: } & \begin{tabular}{c}
Beginning of \\
the Year
\end{tabular} & \begin{tabular}{c}
End of \\
the Year
\end{tabular} \\
\hline Raw materials & \( \mathrm{Br} 7,000 \) & \( \mathrm{Br} 15,000 \) \\
\hline Work in process & \( \mathrm{Br} 10,000 \) & \( \mathrm{Br} 5,000 \) \\
\hline Finished goods & \( \mathrm{Br} \mathrm{20,000} \) & \( \mathrm{Br} 35,000 \) \\
\hline
\end{tabular}
Required:
a) Prepare a schedule of cost of goods manufactured in good form.
b) Prepare the cost of goods sold section of Mason Company's income statement for the year.
