Q1.

The cost of goods sold section: The Seabright Manufacturing Company or of any other
manufacturing business can be divided into five distinct parts: following data
January 1, 2019 December 31, 2019
Material inventory............................................ $1,572,400 $1,270,600
Work in process................................................. 2,338,000 1,303,200
Finished goods.................................................... 966,100 658,000

Other data:
Additional raw/direct material purchased .....................................$8,420,000
Raw material purchases return and allowances.............................. $42,000
Direct labor....................................................................................$7,346,400
Indirect labor..................................................................................$1,329,300
Labor Salaries.................................................................................$972,000
Payroll taxes...................................................................................$489,000
Power..............................................................................................$112,000
Heat.................................................................................................$96,200
Light................................................................................................$44,300
Factory supplies..............................................................................$50,000
Depreciation: factory building........................................................$68,300
Depreciation: factory machinery....................................................$403,000
Repair and maintenance: factory....................................................$145,800
Tools and dies used.......................................................................$178,600
Insurance on factory building and machinery................................$21,200
Sales (4500,000 units @$5.50 per unit)
Marketing expense.......................................................................$580,000
Advertising expense.....................................................................$533,750
Interest and debt expense.............................................................$129,500
Income tax expense......................................................................$1,064,250

Required:
1. Calculate Cost of goods sold (CGS) for Seabright Manufacturing Company.
2. Prepare Income Statement for manufacturing company?
 Seabright Manufacturing Company
Statement of cost of goods sold
December, 31 2019 $
1 Direct Material
Add: Material inventory January 1, 2019........................................$1,572,400
Add: Additional raw/direct material purchased ..........$8,420,000
Less: Raw material purchases return and allowances...........($42,000)
Material available for use..................................................................$8,378,000
Less: Material inventory December 31, 2019....................................($1,270,600)
Direct material consumed..........................................................................................8,679,800

2 Direct labor
Direct labor.................................................................................................................7,346,400
3.Factory overhead/Manufacturing overhead
Indirect labor.................................................................................$1,329,300
Labor Salaries.................................................................................$972,000
Payroll taxes...................................................................................$489,000
Power..............................................................................................$112,000
Heat.................................................................................................$96,200
Light................................................................................................$44,300
Factory supplies..............................................................................$50,000
Depreciation: factory building........................................................$68,300
Depreciation: factory machinery....................................................$403,000
Repair and maintenance: factory....................................................$145,800
Tools and dies used.......................................................................$178,600
Insurance on factory building and machinery................................$21,200
Total factory overhead…………………………………………………………. $3,909,700
Total manufacturing cost………………………………………………………. $19935900
4 W.I.P
Add: Work in process for Jan. 1 2019.................................................................... 2,338,000
$ 22273900
Less: Work in process for Dec. 31 2019……………………………………….. ($1,303,200)
Cost of goods manufactured…………………………………………………… $ 20970700
Question 2:
Question 3