Yolo Windows, a manufacturer of windows for commercial buildings, reports the fo
ID: 2582127 • Letter: Y
Question
Yolo Windows, a manufacturer of windows for commercial buildings, reports the following account information for last year (all costs are in thousands of dollars):
Required:
Prepare an income statement with a supporting cost of goods sold statement. (Enter your answers in thousands of dollars (i.e., 234,000 should be entered as 234).)
Information on January 1 (Beginning): Direct materials inventory $ 89 Work-in-process inventory 118 Finished goods inventory 1,610 Information for the year: Administrative costs $ 3,630 Direct labor 12,200 Direct materials purchases 8,220 Factory and machine depreciation 11,730 Factory supervision 747 Factory utilities 947 Indirect factory labor 2,940 Indirect materials and supplies 678 Marketing costs 1,510 Property taxes on factory 277 Sales revenue 45,500 Information on December 31 (Ending): Direct materials inventory $ 99 Work-in-process inventory 140 Finished goods inventory 1,430Explanation / Answer
Particulars Amount A. Sales 45,500 i. Direct Materials Consumed : 8,210 Direct Material Inventory (Jan 1) 89 Add: Direct Material Purchases 8220 Less : Direct Material Inventory (Dec 31) (99) ii. Direct Labour 12,200 iii. Factory Overhead : 17,319 Factory and machine depreciation 11,730 Factory supervision 747 Factory utilities 947 Indirect factory labor 2,940 Indirect materials and supplies 678 Property taxes on factory 277 Total manufacturing cost (i+ii+iii) 37,729 Add : work in process inventory, January 1 118 Less : work in process inventory, December 31 (140) Cost of goods manufactured 37,707 Add : finished goods inventory, January 1 1,610 Less finished goods inventory, December 31 (1,430) B. Cost of goods sold 37,887 Gross Profit 7,613 Less commercial expenses: (5,140) Administrative costs 3,630 Marketing costs 1,510 Income from operations 2,473 Other incomes & expenses 0 Income before income tax 2,473 Less : Tax 0 Net income 2473
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