Module 9 Assignment: The following information was available for Hamilton Indust

Question

Module 9 Assignment: The following information was available for Hamilton Industries for the year 20XX: Inventories 1-Jan 31-Dec Materials $85,000 $105,000 Work in process 120,000 105,000 Finished goods 125,000 110,000 Advertising expense $75,000 Depreciation expense-office equipment 25,000 Depreciation expense-factory equipment 16,000 Direct Labor 205,000 Heat, light, and power-factory 6,500 Indirect labor 26,000 Materials purchased 135,000 Office salaries expense 85,000 Property taxes-factory 4,500 Property taxes-headquarters 15,000 Rent expense-factory 7,500 Sales 950,000 Sales salaries expense 150,000 Supplies-factory 3,500 Miscellaneous cost-factory 4,500 Requirements: 1 Prepare the 20XX statement of cost of goods manufactured. Hamilton Industries Statement of Cost of Goods Manufactured For the Year ended December 31, 20XX 2 Prepare the 20XX income statement. Hamilton Industries Income Statement For the Year ended December 31, 20XX

Explanation / Answer

Hamilton Industries
Statement of Cost of Goods Manufactured
For the Year ended December 31, 20XX

Work in Process, January 1, 20XX 120,000

Raw Materials:
Materials inventory, January 1, 20XX 85,000
Materials purchased 135,000
Cost of materials available for use 215,000
Materials inventory, December 31, 20XX (105,000)
Cost of materials used 110,000

Direct Labor 205,000

Factory Overhead:
Depreciation expense - factory equipment 16,000
Heat, light, and power - factory 6,500
Indirect labor 26,000
Property taxes - factory 4,500
Rent expense - factory 7,500
Supplies - factory 3,500
Miscellaneous cost - factory 4,500
Total factory overhead 68,500

Total Manufacturing Costs 503,500
Less Work in Process - December 31, 20XX (105,000)

Cost of Goods Manufactured 398,500


Hamilton Industries
Income Statement
For the Year ended December 31, 20XX

Sales 950,000

Cost of Goods Sold:
Finished goods inventory, January 1, 20XX 125,000
Cost of goods manufactured 398,500
Total cost of goods available for sale 523,500
Less finished goods inventory, December 31, 20XX (110,000)
Cost of goods sold 413,500

Gross profit on sales 536,500

Operating expenses:
Sales salaries expense 150,000
Office salaries expense 85,000
Depreciation expense - office equipment 25,000
Property taxes - headquarters 15,000
Total operating expenses 275,000

Net Income 261,500

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