Please prepare the Income Statement for the Davis Corporation. For the Month End

Question

Please prepare the Income Statement for the Davis Corporation.

  

For the Month Ended Dec 30, 2015

                                                         Balance/Dec1 Balance/Dec 30

Balance/Dec 1 Balance/Dec 30

Raw Material Inventory                     $ 5,600                       $ 4,100

Work in Process Inventory                 10,200                       12,800

Finished Goods Inventory                      8,100                           6,700

Purchases of Raw Materials                                                   $63,000

Direct Manufacturing Labor                                                   15,000

Indirect Manufacturing Labor                                                 32,000

Plant Insurance                                                                           8,000

Depreciation Expense - Plant, Building, and Equip.               22,000

Repairs and Maintenance - Plant                                                7,200

Marketing, Distribution, and Customer-Service Costs          24,000

General and Administrative Costs                                          19,200

Revenue                                                                                  258,300

Income Tax Rate                                                                     40.00%

Explanation / Answer

Income Statement of the Davis Corporation for the month ended December 30 2015:

Particulars

Amount

Revenue

258300

Less: Cost of Goods Sold:

Opening Inventory:

Raw material                         

Work in Process                                 

Finished Goods

5600

10200

8100

23900

Purchases

63000

Cost of Goods Available for Sale

86900

Less: Closing Inventory:

          Raw material                         

         Work in Process                        

          Finished Goods

4100

12800

6700

(23600)

Cost of Goods Sold

(63300)

Gross Profit

195000

Less: Operating Expenses

Direct Manufacturing Labor

Indirect Manufacturing Labor

Plant Insurance

Depreciation Expense – Plant, Building and Equipment

Repairs & Maintenance – Plant

Marketing, Distribution and Customer Service Costs

General & Administrative Costs

15000

32000

8000

22000

7200

24000

19200

(127400)

Operating Profit

67600

Less: Income Tax (40%)

67600*0.40

(27040)

Profit after tax

40560

Particulars

Amount

Revenue

258300

Less: Cost of Goods Sold:

Opening Inventory:

Raw material                         

Work in Process                                 

Finished Goods

5600

10200

8100

23900

Purchases

63000

Cost of Goods Available for Sale

86900

Less: Closing Inventory:

          Raw material                         

         Work in Process                        

          Finished Goods

4100

12800

6700

(23600)

Cost of Goods Sold

(63300)

Gross Profit

195000

Less: Operating Expenses

Direct Manufacturing Labor

Indirect Manufacturing Labor

Plant Insurance

Depreciation Expense – Plant, Building and Equipment

Repairs & Maintenance – Plant

Marketing, Distribution and Customer Service Costs

General & Administrative Costs

15000

32000

8000

22000

7200

24000

19200

(127400)

Operating Profit

67600

Less: Income Tax (40%)

67600*0.40

(27040)

Profit after tax

40560

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