prob031 - Problem 31 (Text: Chs. 4-8) The following is a...

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Problem 31 (Text: Chs. 4-8) The following is a condensed 2008 Income Statement for Thingamajig Manufacturing Ltd. for its fiscal year-end December 31. The company was incorporated in Ontario in 1980 and has been continuously in the same business since that date. Sales. .................................................................................... $1,750,000 Cost of manufacturing (see note (1), below). .......................... (1,050,000 Gross margin. ......................................................................... $700,000 General and administrative expenses (see note (2), below). ... (294,000) $ 406,000 Extraordinary income and expenses (see note (3), below). ..... (77,000) Net income. ............................................................................ $ 329,000 Provision for income taxes. .................................................... (91,000) Net income after taxes. ........................................................... $ 238,000 Note (1) Included in the cost of manufacturing: (a) Inventories: Dec. 31, 2007 Dec. 31, 2008 Raw materials. ............................................ $ 70,000 $ 94,500 Work-in-process. .............................................. 52,500 45,500 Finished goods. ................................................ 140,000 175,000 $262,500 $315,000 (b) The finished goods opening inventory is stated net of a possible reserve for a decline in market price of $35,000.
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This note was uploaded on 11/19/2010 for the course ACC 742 taught by Professor Sydor during the Spring '10 term at Ryerson.

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prob031 - Problem 31 (Text: Chs. 4-8) The following is a...

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