The following information appears in Toledo Toy Company\'s records for last year
ID: 2370448 • Letter: T
Question
The following information appears in Toledo Toy Company's records for last year:
Sales revenue.........................................$99,300
Administrative costs.................................19,700
Manufacturing building depreciation.............11,750
Indirect materials and supplies.....................2,150
Sales commissions.....................................6,800
Raw-material inventory, January 1................8,200
Direct labor.............................................16,300
Raw-material inventory, December 31............9,000
Finished-goods inventory, January 1..............4,450
Finished goods inventory, December 31..........3,900
Raw-materials purchases...........................10,150
Work-in-process inventory, December 31.......5,550
Supervisory and indirect labor......................6,200
Property taxes, manufacturing plant..............3,700
Plant utilities and power............................11,500
Work-in-process inventory, January 1...........6,600
Prepare an income statement with a supporting schedule of cost of goods sold.
Explanation / Answer
Toledo Toy Company Cost of Goods Sold For the Year Ended December 31, ____ Work in Process, January 1, ____ 6,600 Raw Materials Used: Raw Materials Inventory, January 1, ____ 8,200 Plus Purchases 10,150 Total Cost of Materials Available for Use 18,350 Less Raw Materials Inventory, December 31, ____ 9,000 Total Raw Materials Used 9,350 Direct Labor 16,300 Manufacturing Overhead: Manufacturing Building Depreciation 11,750 Indirect Materials and Supplies 2,150 Supervisory and Indirect Labor 6,200 Property Taxes, Manufacturing Plant 3,700 Plant Utilities and Power 11,500 Total Manufacturing Overhead 35,300 Total Manufacturing Costs 67,550 Less Work in Process, December 31, ____6,600 Cost of Goods Manufactured 62,000 Plus Finished Goods, January 1, ____ 4,450 Total Cost of Goods Available for Sale 66,450 Less Finished Goods, December 31, ____ 3,900 Cost of Goods Sold 62,550 Toledo Toy Company Income Statement For the Year Ended December 31, ____ Sales 99,300 Cost of Goods Sold 62,550 Gross Profit on Sales 36,750 Operating Expenses: Administrative Costs 19,700 Sales Commissions 6,800 Total Operating Expenses 26,500 Net Income 10,250
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.