the zoe corporation has the following information for the month of March. Prepar
ID: 2361105 • Letter: T
Question
the zoe corporation has the following information for the month of March. Prepare a) schedule of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c) prepare only the inventory section of the balance sheet.
Purchases $92,000
Material inventory March 1 $6,000
Material inventory,March 31 $8,000
Direct Labor $25,000
Factory overhead $37,000
Work in process, March 1 $22,000
Work in Process, March 31 $18,500
Finished goods inventory, March 1 $21,000
Finished goods inventory, March 31 $25,000
Sales $257,000
Sales and administrative expenses $79,000
Explanation / Answer
a. Schedule of cost of goods manufactured:
Direct materials:
Beginning Inventory
6,000
Purchases of direct materials
92,000
Cost of direct materials available for use
98,000
Ending inventory
8,000
Direct materials used
90,000
Direct manufacturing labor
25,000
Manufacturing overhead costs
37,000
Manufacturing costs incurred
152,000
Beginning work in process inventory
22,000
Total manufacturing costs to account for
174,000
Ending work in process inventory
18,500
Cost of goods manufactured
155,500
b. income statement
Revenues
257,000
Costs of goods sold:
Beginning finished goods inventory
21,000
Cost of goods manufactured
155,500
Cost of goods available for sale
176,500
Ending finished goods inventory
25,000
Cost of gods sold
151,500
Gross Profit
105,500
Operating costs:
Sales and Administrative expenses
79,000
Total operating costs
79,000
Operating Income
26,500
c. Inventory section of balance sheet:
Inventory:
Raw Materials
8,000
Work in process
18,500
Finished Goods
25,000
Total Inventory
51,500
Direct materials:
Beginning Inventory
6,000
Purchases of direct materials
92,000
Cost of direct materials available for use
98,000
Ending inventory
8,000
Direct materials used
90,000
Direct manufacturing labor
25,000
Manufacturing overhead costs
37,000
Manufacturing costs incurred
152,000
Beginning work in process inventory
22,000
Total manufacturing costs to account for
174,000
Ending work in process inventory
18,500
Cost of goods manufactured
155,500
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