The following calendar year-end information is taken from the December 31, 2011, adjusted trial balance and other records of Plaza Company

The following calendar year-end information is taken from the December 31, 2011, adjusted trial balance and other records of Plaza Company.





Advertising expense $ 30,750 Direct labor $ 677,480

Depreciation expense—Office equipment 9,250 Income taxes expense 235,725

Depreciation expense—Selling equipment 10,600 Indirect labor 58,875

Depreciation expense—Factory equipment 35,550 Miscellaneous production costs 10,425

Factory supervision 104,600 Office salaries expense 65,000

Factory supplies used 9,350 Raw materials purchases 927,000

Factory utilities 35,000 Rent expense—Office space 24,000

Inventories Rent expense—Selling space 28,100

Raw materials, December 31, 2010 168,850 Rent expense—Factory building 78,800

Raw materials, December 31, 2011 184,000 Maintenance expense—Factory equipment 37,400

Goods in process, December 31, 2010 17,700 Sales 4,527,000

Goods in process, December 31, 2011 21,380 Sales discounts 64,500

Finished goods, December 31, 2010 169,350 Sales salaries expense 394,560

Finished goods, December 31, 2011 138,490

Requirement 1:

Prepare the company’s 2011 manufacturing statement.

Requirement 2: Prepare the company’s 2011 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.


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