3. Based on the following information, prepare a Schedule of Cost of Goods Manuf

Question

3. Based on the following information, prepare a Schedule of Cost of Goods Manufactured and a multi-step Income Statement for Junaluska Company for the year ended December 31, 2020 g Work-in-Process Inventory. Jan. 1 Ending Work-in-Process Inventory, Dec. 31 g Finished Goods Inventory, Jan. 1 $60,000 40 50,000 20,000 1,800,000 500,000 300,000 ding Finished Goods Inventory, Dec. 31 et Sales Revenue Selling and Administrative Expenses irect Labor Manufacturing Overhead; actual and allocated Direct Materials Used Income Tax Expense 400,000 200,000 70,000

Explanation / Answer

a) Schedule of cost of goods manufactured Direct Material Used $   2,00,000 Direct Labor $   3,00,000 Manufacturing overhead $   4,00,000 Total Manufacturing Costs $   9,00,000 Add:Beginning Work in process $       60,000 Less:Ending Work in process $       40,000 Cost of goods manufactured $   9,20,000 b) Multi-Step Income Statement Net Sales Revenue $ 18,00,000 Less:Cost of goods sold $   9,50,000 Gross Profit $   8,50,000 Less:Opearing Expenses: Selling an administrative expense $   5,00,000 Income Before Income taxes $   3,50,000 Less:Income Tax Expenses $       70,000 Net Income $   2,80,000 Working: Cost of goods manufactured $   9,20,000 Add:Beginning Finished goods inventory $       50,000 Less:Ending Finished goods Inventory $       20,000 Cost of goods sold $   9,50,000

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