Tombert Company

P19-5A Tombert Company is a manufacturer of computers. Its controller resigned in October 2010. An inexperienced assistant accountant has prepared the following income statement for the month of October 2010. TOMBERT COMPANY Income Statement For the Month Ended October 31, 2010 Sales (net) $780,000 Less: Operating expenses Raw materials purchases $264,000 Direct labor cost 190,000 Advertising expense 90,000 Selling and administrative salaries 75,000 Rent on factory facilities 60,000 Depreciation on sales equipment 45,000 Depreciation on factory equipment 31,000 Indirect labor cost 28,000 Utilities expense 12,000 Insurance expense 8,000 803,000 Net loss $(23,000) Prior to October 2010 the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As his friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows. Inventory balances at the beginning and end of October were: October 1 October 31 Raw materials $18,000 $34,000 Work in process 16,000 14,000 Finished goods 30,000 48,000 Only 70% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Complete the schedule of cost of goods manufactured for October 2010. (List amounts from largest to smallest eg 10, 5, 3, 2.) TOMBERT COMPANY Cost of Goods Manufactured Schedule For the Month Ended October 30, 2010 Factory utilitiesWork in process, October 1Finished goods inventory, October 31Sales (net)Raw materials inventory, October 31Direct materials usedWork in process, October 31Factory insuranceSelling and Administrative salariesFi

(a) TOMBERT COMPANY

Cost of Goods Manufactured Schedule

For the Month Ended October 31, 2010

Work in process, October 1 $ 16,000

Direct materials

Raw materials...