Reno Company Provided the Following Information Regarding Its Operations for the Month

Essay

Reno Company provided the following information regarding its operations for the month ending September 30, 2013: $$\begin{array} { | l | r | } \hline \text { Administrative costs } & \$ 30,000 \\\hline \text { Depreciation on factory equipment } & 12,000 \\\hline \text { Indirect materials } & 2,000 \\\hline \text { Marketing and distribution costs } & 24,000 \\\hline \text { Salaries for factory supervisors } & 20,000 \\\hline \text { Wages for production workers } & 26,000 \\\hline \text { Raw materials used } & 38,000 \\\hline \text { Sales revenue } & 196,000 \\\hline \text { Selling costs } & 18,000 \\\hline \text { Utilities for production facilities } & 8,000 \\\hline & \\\hline \text { Number of units produced } & 20,000 \\\hline \text { Number of units sold } & 15,000 \\\hline\end{array}$$
Required:
1) Compute the firm's total manufacturing overhead cost.
2) Prepare a schedule of inventory costs that shows total product costs, ending inventory, and cost of goods sold; and
3) Prepare an income statement for the month ending September 30, 2013.