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 $81,310 $108,140 Materials inventory, December 31 (a) 122,200 Materials purchased 206,530 (a) Cost of direct materials used in production 217,910 (b) Direct labor 306,540 243,320 Factory overhead 95,130 121,120 Total manufacturing costs incurred in December (b) 699,670 Total manufacturing costs 775,700 960,290 Work in process inventory, December 1 156,120 260,620 Work in process inventory, December 31 131,720 (c) Cost of goods manufactured (c) 693,180 Finished goods inventory, December 1 137,410 121,120 Finished goods inventory, December 31 143,920 (d) Sales 1,198,510 1,081,400 Cost of goods sold (d) 699,670 Gross profit (e) (e) Operating expenses 156,120 (f) Net income (f) 240,070

Explanation / Answer

Req 1 ON COMPANY OFF COMPANY A 69930 349290 B 619580 335230 C 643980 267110 D 637470 114630 E 561040 381730 F 404920 141660 Req 2: ON COMPANY SCHEDULE OF COST OF GOODS MANUFACTURED Wprk in process Inv beg. 156120 Direct material: Material inventory Beg. 81310 Add: Purchases 206530 Less: Ending inventory 69930 Cost of material used in production 217910 Direct labour 306540 Production OH 95130 Total manufacturing cost incurred 619580 Total manufacturing cost   775700 Less: Ending WIP 131720 Cost of goods manufactured 643980 Req 3: ON COMPANY INCOME STATEMENT sales 1198510 Cost of goods sold Fininshed goods inve. Beg. 137410 Cost of goods manufactured 643980 Cost of goods available ffor sale 781390 Less: Finished goods inv. Ending 143920 Cost of goods sold 637470 Gross profit 561040 Less: Operating expense 156120 Net income 404920

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