Use the Dynamic Exhibit to answer the following questions. 1. When the ending ba
ID: 2333743 • Letter: U
Question
Use the Dynamic Exhibit to answer the following questions. 1. When the ending balance in materials inventory is $40,000, the cost of goods manufactured is 2. When the ending balance in materials inventory is $35,000, the cost of goods manufactured is 3. When the ending balance in materials inventory is $30,000, the cost of goods sold is 4. When the ending balance in materials inventory is $32,500, the cost of goods sold is and net income is and net income is and net income is and net income is Legend Guitars Income Statement For the Year Ended December 31. 20- For the Year Ended December 31, 20- Wark in process ertory Jamuary 2,20 30,000 5366,000 Direct matoria Cost of goods sold: Materials inventory January 1, 20- s 60,000 Finiahed goods inventory,January 1,20 Coat of goods manufecu Cost of finished geads available for sale Less inished goods lnventory, December 31, 20- of materials awailable for use 1G5,000 345,000 Lesa ma.eriab inventory, Decomber 31, 20 Cout of direct materials sed 125,000 ast of goadk sold 110,000 Gross profi 83.500 Factary overhead: Operating capenses 24,000 Selling expense 5 20,000 Depreciation on factory equipmen Foctory supplies and utiity coals otal factory Net Income Tatal manufacturing coats incurred Total manufacturing costs Less work in process inventory, December 31.20 Cost of goods manufactured 270,000 109,000 4.000Explanation / Answer
1) Cost of Goods Manufactured is Same, no effect on Cost of Goods Manufactured of
Changeing in Ending Inventory.
Cost of Goods Manufactured = $285000
2) Cost of Goods Manufactured is Same, no effect on Cost of Goods Manufactured of
Changeing in Ending Inventory.
Cost of Goods Manufactured = $285000
3)
4)
Particulars Amount($) Amount($) Sales 366000 Less : Cost of Goods Sold :- Beginning Inventory 60000 Cost of Goods Manufactured 285000 Cost of Finished Goods Available for Sale 345000 Less : Ending Inventory (40000) Cost of Goods Sold 305000 (305000) Gross Profit 61000 Operating Expenses Selling Expenses 20000 Administrative Expenses 15000 Total Operating Expenses 35000 (35000) Net Income 26000Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.