Statement of cost of goods manufactured and income statement for a manufacturing
ID: 2328142 • Letter: S
Question
Statement of cost of goods manufactured and income statement for a manufacturing company Amount Descriptions Statement of Cost of Goods Manufactured Income Statement January 1 December 31 Inventories Materias Work in process Finished goods $44.250$31,700 63,900 101,200 80,000 99,800 Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment Direct labor Heat, Ight, and power-factory Indirect labor Materials purchased Office salaries expense Property taxes-factory Property taxes-office building Rent expense-factory Sales Sales salaries expense Supplies-factory December 31 $ 400,000 30,000 80,000 1,100.000 53,300 115,000 556,600 318,000 40.000 25,000 27,000 3,850.000 200,000 9,500Explanation / Answer
THE ROBSTOWN CORPORATION
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 20Y8
Work in process inventory, January 1, 20Y8
$ 63,900
Direct materials:
Materials inventory, January 1, 20Y8
$44,250
Purchases
556,600
Cost of materials available for use
$600,850
Less materials inventory, December 31, 20Y8
31,700
Cost of direct materials used in
production
$569,150
Direct labor
1,100,000
Factory overhead:
Indirect labor
$115,000
Depreciation expense—factory equipment
80,000
Heat, light, and power—factory
53,300
Property taxes—factory
40,000
Rent expense—factory
27,000
Supplies—factory
9,500
Miscellaneous cost—factory
11,400
Total factory overhead
336,200
Total manufacturing costs incurred during
the year
2,005,350
Total manufacturing costs
$2,069,250
Less work in process inventory,
December 31, 20Y8
80,000
Cost of goods manufactured
$1,989,250
THE ROBSTOWN CORPORATION
Income Statement
For the Year Ended December 31, 20Y8
Sales
$3,850,000
Cost of goods sold:
Finished goods inventory, January 1, 20Y8
$ 101,200
Cost of goods manufactured
1,989,250
Cost of finished goods available for sale
$2,090,450
Less finished goods inventory,
December 31, 20Y8
99,800
Cost of goods sold
1,990,650
Gross profit
$1,859,350
Operating expenses:
Administrative expenses:
Office salaries expense
$318,000
Depreciation expense—office
equipment
30,000
Property taxes—office building
25,000
$ 373,000
Selling expenses:
Advertising expense
$400,000
Sales salaries expense
200,000
600,000
Total operating expenses
973,000
Net income
$ 886,350
THE ROBSTOWN CORPORATION
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 20Y8
Work in process inventory, January 1, 20Y8
$ 63,900
Direct materials:
Materials inventory, January 1, 20Y8
$44,250
Purchases
556,600
Cost of materials available for use
$600,850
Less materials inventory, December 31, 20Y8
31,700
Cost of direct materials used in
production
$569,150
Direct labor
1,100,000
Factory overhead:
Indirect labor
$115,000
Depreciation expense—factory equipment
80,000
Heat, light, and power—factory
53,300
Property taxes—factory
40,000
Rent expense—factory
27,000
Supplies—factory
9,500
Miscellaneous cost—factory
11,400
Total factory overhead
336,200
Total manufacturing costs incurred during
the year
2,005,350
Total manufacturing costs
$2,069,250
Less work in process inventory,
December 31, 20Y8
80,000
Cost of goods manufactured
$1,989,250
THE ROBSTOWN CORPORATION
Income Statement
For the Year Ended December 31, 20Y8
Sales
$3,850,000
Cost of goods sold:
Finished goods inventory, January 1, 20Y8
$ 101,200
Cost of goods manufactured
1,989,250
Cost of finished goods available for sale
$2,090,450
Less finished goods inventory,
December 31, 20Y8
99,800
Cost of goods sold
1,990,650
Gross profit
$1,859,350
Operating expenses:
Administrative expenses:
Office salaries expense
$318,000
Depreciation expense—office
equipment
30,000
Property taxes—office building
25,000
$ 373,000
Selling expenses:
Advertising expense
$400,000
Sales salaries expense
200,000
600,000
Total operating expenses
973,000
Net income
$ 886,350
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