Chapter 3 Exercise 5 5. Schedule of cost of goods manufactured, income statement
ID: 2369480 • Letter: C
Question
Chapter 3 Exercise 5
5. Schedule of cost of goods manufactured, income statement
The following information was taken from the ledger of Jefferson Industries, Inc.:
Direct labor $85,000 Administrative expenses $59,000
Selling expenses 34,000 Work in. process
Sales 300,000 Jan. 1 29,000
Finished goods Dec. 31 21,000
Jan. 1 115,000 Direct material purchases 88,000
Dec. 31 131,000 Depreciation: factory 18,000
Raw (direct) materials on hand Indirect materials used 10,000
Jan. 1 31,000 Indirect labor 24,000
Dec. 31 40,000 Factory taxes 8,000
Factory utilities 11,000
Prepare the following:
a. A schedule of cost of goods manufactured for the year ended December 31.
b. An income statement for the year ended December 31.
Explanation / Answer
Opening Stock of materials
115000
Purchases
88000
Closing Stock
-21000
Raw Materials Consumed
=SUM(ABOVE) 182000
Raw Materials Consumed
182000
Direct Labour
85000
Admin Expenses
59000
Selling Expenses
34000
Indirect Materials used
10000
Indirect Labour
24000
Factory Taxes
8000
Factory Utilities
11000
Cost of goods manufactured
=SUM(ABOVE) 413000
Sales
300000
Cost of goods manufactured
-413000
Gross Profit
-113000
Opening Stock of materials
115000
Purchases
88000
Closing Stock
-21000
Raw Materials Consumed
=SUM(ABOVE) 182000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.