Grant's Ironhorse Company Manufactures Model Railroad Cars (A)Prepare a Schedule of Cost of Goods Manufactured for Grant's

Essay

Grant's Ironhorse Company manufactures model railroad cars.At the end of October,2019 the accounting records showed the following:
$$\begin{array} { | l | r | r | } \hline \text { Dirventories: } & \text { Beginning } &{ \text { Ending } } \\\hline \text { Direct Materials } & \$ 10,000 & \$ 5,000 \\\hline \text { Work-in-Process } & 15,000 & 20,000 \\\hline \text { Finished Goods } & 0 & 5,800 \\\hline \text { Other Information: } & & \\\hline \text { Direct Materials Purchases } & & 40,000 \\\hline \text { Plant maintenance services } & & 6,800 \\\hline \text { Plant supervisor's salary } & & 31,500 \\\hline \text { Sales salaries } & & 12,700 \\\hline \text { Delivery costs } & & 3,100 \\\hline \text { Sales revenue } & & 236,000 \\\hline \text { Utilities for plant } & & 10,500 \\\hline \text { Rent on plant } & & 23,000 \\\hline \text { Advertising } & & 8,000 \\\hline \text { Direct labor } & & 30,000 \\\hline\end{array}$$ (a)Prepare a schedule of cost of goods manufactured for Grant's Ironhorse Company and
(b)Prepare an income statement for Grant's Ironhorse Company for the year ended October 31,2019