Problem C Good Vibrations, Inc., produces videotapes of musical performances. A

Question

Problem C Good Vibrations, Inc., produces videotapes of musical performances. A newly hired executive of the company has asked you to sort through the records and prepare a statement of the company's cost of goods manufactured. You find the following data from records prepared by Good Vibrations, Inc., for the year ended December 31: Materials purchases Direct labor Indirect labor Factory utilities used Factory supplies used Depreciation expense-Factory Equipment Other manufacturing overhead Depreciation expense-office building Selling expenses Other administrative expenses S50,000 40,000 15,000 7,000 5,000 10,500 25,000 14,000 50,000 75,000 Inventories: Beginning raw materials inventory, January 1 6,000 Ending raw materials inventory, December 31 10,500 Beginning work in process inventory, January 1 Ending work in process inventory, December 31 $10,000 9,500 Beginning Finished Goods Inventory, January 20,000 Ending Finished Goods Inventory, December 31 Sales for the year were $400,000 Requirements 5,000 a. Prepare a statement of cost of goods manufactured for Good Vibrations, Inc. for the year ended December 31. b. Prepare an income statement for Good Vibrations, Inc., for the year ended December 31.

Explanation / Answer

a.

Good Vibrations Inc

Statement of cost of good manufactured for the year ended December 31

b.

Good vibrations inc

Income statement for the year ended Dec 31

Particulars Amount($) Amount($) Beginning raw materials $6000 add: material purchases $50000 Ending raw material ($10500) Raw materials used in production $45500 Direct labor $40000 Factory overhead: Indirect labor $15000 Factory utilities $7000 Factory supplies $5000 Depreciation $10500 Other manufacturing overhead $25000 Cost of manufactured $148000 Add: beginning work in process $10000 Less: ending work in process ($9500) Cost of goods manufactured $148500.

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