Answer Happy

[12 marks] Petite Company operates in the toys manufacturing industry. The company produces wooden toys for 3 to 6 years old kids. During September 2020, the company incurred the following monthly costs: Marketing expense $144,500 Labour costs of assembly-line $346,500 workers Materials used in toys 371,250 Freight expense 52,700 Manufacturing plant, rental 115,500 expense 47,850 Property taxes on manufacturing plant Small tools used in factory 70,950 29,750 Property taxes on company warehouse Head-office, rental expense 72,000 Sales commissions 168,000 Dividends 20,000 Head-office, insurance expense 2,250 At September 1, 2020, the raw material inventory was $60,000, the work-in-process was $94,050 and the finished goods inventory was $262,500. At September 30, 2020, the raw material inventory was $96,525, the work-in-process was $75,075 and the finished goods inventory was $289,575. Instructions (a) Compute costs of goods manufactured for September 2020. (5.5 marks) (b) Prepare an income statement through gross profit for the month of September 2020, assume sales of $1,995,000. (4 marks) (C) Indicate Petite Company balance sheet presentation of the inventories at September 30, 2020. (2.5 marks)