Peters Manufacturing Company has the following data at June 30, 2013: Raw Materi
ID: 2504371 • Letter: P
Question
Peters Manufacturing Company has the following data at June 30, 2013:
Raw Materials Inventory, June 1 $13,800
work in process inventory, june 1 18,100
finsihed goods inventory, june 1 43,500
total manufacturing costs 430,000
sales 590,000
work in process inventory, june 30 30,500
finsihed goods inventory, june 30 65,200
Raw materials inventory, june 30 18,000
(a) Determine cost of goods sold for the month of june
(b) prepare an income statement through gross profit for the month of june
Please show all work
Explanation / Answer
Cost of goods sold statement
Particulars
Amount($)
Raw Materials Inventory, June 1
13,800
Add:-Purchases [Balancing figure] i.e.[430000+
30400-18100+
18000-13800]
446500
Less:- Raw materials inventory, june 30
( 18,000)
Add:- work in process inventory, june 1
18100
Less:- work in process inventory, june 30
(30400)
Total manufacturing cost
430000
Add:- finsihed goods inventory, june 1
43500
Less:- finsihed goods inventory, june 30
(65200)
Cost of goods sold [430000+43500-62500]
408300
Income Statement
Particulars
Amount($)
Sales
590,000
Less:- Cost of goods sold
(408300)
Gross profit
181700
NOTE:- PURCHASES = Total manufacturing cost + work in process inventory, june 30 - work in process inventory, june 1 + Raw materials inventory, june 30 - Raw Materials Inventory, June 1
= 430000+30400-18100+ 18000-13800
= $446500
Cost of goods sold statement
Particulars
Amount($)
Raw Materials Inventory, June 1
13,800
Add:-Purchases [Balancing figure] i.e.[430000+
30400-18100+
18000-13800]
446500
Less:- Raw materials inventory, june 30
( 18,000)
Add:- work in process inventory, june 1
18100
Less:- work in process inventory, june 30
(30400)
Total manufacturing cost
430000
Add:- finsihed goods inventory, june 1
43500
Less:- finsihed goods inventory, june 30
(65200)
Cost of goods sold [430000+43500-62500]
408300
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