How does the format of the income statement for a manufacturing concern differ from the income statement of a merchandising business? Part 1Canine Nutritionists is a manufacturer of grains for dogs. The following information pertains to operations duringthe 2021 calendar year.Inventory Data:Raw MaterialsIndirect Materials1/1/2021 Purchases 31/12/2021$750,000 $4,330,00055,000 320,000924,0001,142,600Work in ProgressFinished GoodsThe following additional information is also available:Sales RevenueDirect Factory LaborIndirect Factory LaborTotal Depreciation ¹Total Utilities 2Distribution & Customer Service CostsInsurance on Plant & EquipmentProperty Taxes 3Administrative Wages & SalariesAdvertising ExpensesSales Commissionn/an/a$807,00071,500814,7501,720,200$14,776,0004,371,0001,232,250400,000525,00076,800585,00090,0001,076,00057,7005% of Sales Revenue1 Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general andadministrative costs.2 Of the total utilities, 75% relates to manufacturing and 25% relates to general and administrative costs.3 The property taxes should be shared: 85% manufacturing & 15% general & administrative costs.

Income Statement for Manufacturing Concern Relative to the statement of income of utility or retail…

Answered: How does the format of the income…

How does the format of the income statement for a manufacturing concern differ from the income statement of a merchandising business?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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