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:

Required:

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

2. Prepare On Company's statement of cost of goods manufactured for December.

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

On
Company Off
Company Materials inventory, December 1 $66,040 $89,810 Materials inventory, December 31 (a) 101,490 Materials purchased 167,740 (a) Cost of direct materials used in production 176,990 (b) Direct labor 248,970 202,070 Factory overhead 77,270 100,590 Total manufacturing costs incurred in December (b) 581,070 Total manufacturing costs 630,030 797,510 Work in process inventory, December 1 126,800 216,440 Work in process inventory, December 31 106,980 (c) Cost of goods manufactured (c) 575,680 Finished goods inventory, December 1 111,610 100,590 Finished goods inventory, December 31 116,890 (d) Sales 973,430 898,100 Cost of goods sold (d) 581,070 Gross profit (e) (e) Operating expenses 126,800 (f) Net income (f) 199,380

Explanation / Answer

1.

Note: For On Company, please see 2 and 3 for the calculations. For Off Company, calculations shown in the next column.

2.

3.

Letter On Company Off Company a. 56790 290090 (278410 + 101490 - 89810) b. 503230 278410 (581070 -202070 - 100590) c. 523050 221830 (797510 - 575680) d. 517770 95200 (100590 + 575680 - 581070) e. 455660 317030 (898100 - 581070) f. 328860 117650 (317030 - 199380)

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