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Identify Cost of Goods Manufactured for the period and create an income statement for August 2014.

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Statement of Cost of Goods Manufactured and Income StatementInformation from the records of the Valley Manufacturing Company for August 2014 follows:

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  • Sales …………………………………………………………………………………$210,000
  • Selling and administrative expenses …………………………………. 85,000
  • Purchases of raw materials…………………………………………………30,000
  • Direct labor ………………………………………………………………………..20,000
  • Manufacturing overhead…………………………………………………….37,000

Inventories

August 1        August 31

  • Raw materials ………………………………………. $ 8,000        $ 5,000
  • Work-in-process …………………………………….. 14,000       11,000
  • Finished goods ……………………………………… 15,000         19,000

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