Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several

Question

Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December: On off Company Company Materials inventory, December 1 Materials inventory, December 31 Materials purchased Cost of direct materials used in production Direct labor Factory overhead Total manufacturing costs incurred in December Total manufacturing costs Work in process inventory, December 1 Work in process inventory, December 31 Cost of goods manufactured Finished goods inventory, December 1 Finished goods inventory, December 31 Sales Cost of goods sold Gross profit Operating expenses Net income $75,870 $96,350 (a) 108,880 192,710 216,790 203,330 286,030 88,770 107,910 (b) 623,380 723,800 723,800 145,670 232,200 122,910 (c) 617,600 128,220 107,910 134,290 1,118,320 963,500 (d) 623,380 45,670 (f) 213,900

Explanation / Answer

Statement of Cost of Goods Manufactured On Company   Off Company Direct Material Material Inventory, Dec 1                                75,870.00                             96,350.00 Material Purchased                             192,710.00                          216,790.00 Total Direct Material Available for Prouction                             268,580.00                          368,220.00 Less: Material Inventory, Dec 31                             (65,250.00)                        (108,880.00) $268,580 - $203,330 Cost of Direct Materials Used in Productions                              203,330.00                                              259,340.00 Direct Labor                              286,030.00                                              256,130.00 $623,380 - ($259,340 + $107,910) Factory Overhead                                88,770.00                                              107,910.00 Total Manufacturing Costs incurred in Dec                              578,130.00                                              623,380.00 Add: WIP Inventory, Dec 1                              145,670.00                                              232,200.00 Total Manufacturing Cost                              723,800.00                                              773,000.00 Less: WIP Inventory, Dec 31                           (122,910.00)                                            (155,400.00) $773,000 - $617,600 Cost of Goods Manufactured                              600,890.00                                              617,600.00 Statement of Cost of Goods Sold On Company Off Company Finished Goods Inventory, Dec 1                             128,220.00                              107,910.00 Cost of Goods Manufactured                             600,890.00                              617,600.00 Cost of Goods Available for Sale                             729,110.00                              725,510.00 Less: Finished Goods Inventory, May 31                           (134,290.00)                           (102,130.00) $725,510 - $623,380 Cost of Goods Sold                             594,820.00                              623,380.00 Income Statement On Company Off Company Sales                          1,118,320.00                              963,500.00 Less: Cost of Goods Sold                           (594,820.00)                           (563,210.00) Gross Profit                             523,500.00                              400,290.00 Less: Operating Expenses                           (145,670.00)                           (186,390.00) $400,290 - $213,900 Net Income                             377,830.00                              213,900.00

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