Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several

Question

Manufacturing Income Statement, Statement of Cost of Goods Manufactured

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December 2014:

1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

2. Prepare McClellan Company's statement of cost of goods manufactured for December. Enter all amounts as positive numbers.

3. Prepare McClellan Company's income statement for December.

Grant

Company McClellan

Company Materials inventory, December 1 $56,780 $75,520 Materials inventory, December 31 (a) 85,340 Materials purchased 144,220 169,920 Cost of direct materials used in production 152,170 (a) Direct labor 214,060 (b) Factory overhead 66,430 84,580 Total manufacturing costs incurred during December (b) 488,610 Total manufacturing costs 541,680 670,610 Work in process inventory, December 1 109,020 182,000 Work in process inventory, December 31 91,980 (c) Cost of goods manufactured (c) 484,080 Finished goods inventory, December 1 95,960 84,580 Finished goods inventory, December 31 100,500 (d) Sales 836,940 755,200 Cost of goods sold (d) 488,610 Gross profit (e) (e) Operating expenses 109,020 (f) Net income (f) 167,650 Letter Grant Company McClellan Company a. 48830 160100 432660 243930 b. C. d. 80050 e. $266590 98940

Explanation / Answer

1.

GRANT COMPANY:

a.56,780 + 144,220 – 152,170 = 48,830

b.152,170 + 214,060 + 66,430 = 432,660

c.432,660 + 109,020 – 91,980 = 449,700

d.109,020 + 449,700 – 100,500 = 458,220

e.836,940 – 458,220 = 378,720

f.378,720 – 109,020 = 269,700

MCCLELLAN COMPANY:

a.75,520 + 169,920 – 85,340 = 160,100

b.488,610 + 160,100 – 84,580 = 243,930

c.670,610 – 484,080 = 186,530

d.484,080 + 84,580 – 488,610 = 80,050

e.755,200 – 488,610 = 266,590

f.266,590 – 167,650 = 98,940   

2.

MCCLELLAN COMPANY COST OF GOODS MANUFACTURED FOR THE MONTH ENDED DEC 31,2014
Work in Process Inventory Dec 01, 2014 $182,000
Direct Materials:
Material Inventory Dec 01, 2014 $75,520
Purchases $169,920
Cost of Material Available used $245440
Less Material Inventory, December 31, 2014 $85,340
Cost of Direct materials used a $160,100
Direct Labor b $243,930
Factory Overhead: $84,580
Total factory overhead $84,580
Total manufacturing costs incurred $488610
Total manufacturing costs $670,610
Less work in process Inventory Dec 31, 2012 c $(186,530)
Cost of Goods Manufactured $484,080

3.

MCCLELLAN COMPANY INCOME STATEMENT FOR THE MONTH ENDED DEC 31,2014

Sales $ 755,200
Cost of goods sold 84,580
Finished goods Inventory December 01, 2012 484,080
Cost of goods manufactured $ 568,660
Cost of finished good available for sale d $(80,050)
Less finished goods inventory December 31, 2014 $ 488,610
Cost of goods sold e $266,590
Gross Profit:
Operating Expense $98,940
Total Operating Expenses f $(98,940)
Net Income: $167,650

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