P19-48 m da a wer taken from the records of Goodman Manufacturing Company for th
ID: 2611301 • Letter: P
Question
P19-48 m da a wer taken from the records of Goodman Manufacturing Company for the year ended December 31, 2012. Raw Materials Factory Insurance $ 7,400 Inventory 1/1/12 47,000 Factory Machinery Inventory 12/31/12 44,200 Factory Utilities Inventory 1/1/12 85,000 Sales Inventory 12/31/12 67,800 Plant Manager's Salary Inventory 1/1/12 Inventory 12/31/12 8,000 Cash Raw Materials 7,700 12,900 8,600 465,000 2,500 40,000 6,100 800 62,500 28,000 Depreciation Finished Goods Office Utilities Expense Finished Goods Sales Discounts Work in Process Factory Property Taxes 9,500 Factory Repairs Work in Process Raw Materials Purchases Direct Labor Indirect Labor Accounts Receivable 145,100 18,100 27,000 Instructions (a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.) (b) Prepare an income statement through gross profit. (c) Prepare the current assets section of the balance sheet at December 31.Explanation / Answer
PART-1)
Cost of Goods Manufactured Schedule
WIP 01/01/12
9,500
Direct material
Raw material inventory 01/01/12
47,000
Raw material purchases
62,500
Total Raw material available for use
109,500
Lless: Raw material Inventory on 31/12/12
44,200
Direct material used
65,300
Direct labor
14,100
Manufacturing OH
Plant manager's salary Indirect labor
40,000
Indirect labor
18,100
Factory utilities
12,900
Factory machine depreciation
7,700
Factory Insurance
7,400
Factory Property taxes
6,100
Factory Repairs
800
Total manufacturing OH
93,000
Total manufacturing cost
303,400
Total cost WIP
312,900
Less: WIP 31/12/12
8,000
Cost of goods manufactured
3,04,900
PART-2)
Income statement (Partial)
Sales revenue
Sales
465,000
Minus: Discount
2,500
Net sales
462,500
COGS
Finished goods inventory 01/01/12
85000
Cost of goods manufactured
304,900
Cost of goods for sale
389,900
Finished goods inventory 31/12/12
67,800
Cost of goods sold
322,100
Gross profit
140,400
PART-3)
Balance sheet (partial)
Cash
28,000
Accounts receivable
27,000
Inventories
Finished goods inventory 31/12/12
67,800
WIP 31/12/12
8,000
Raw material inventory 31/12/12
44,200
Total current assets
175,000
Cost of Goods Manufactured Schedule
WIP 01/01/12
9,500
Direct material
Raw material inventory 01/01/12
47,000
Raw material purchases
62,500
Total Raw material available for use
109,500
Lless: Raw material Inventory on 31/12/12
44,200
Direct material used
65,300
Direct labor
14,100
Manufacturing OH
Plant manager's salary Indirect labor
40,000
Indirect labor
18,100
Factory utilities
12,900
Factory machine depreciation
7,700
Factory Insurance
7,400
Factory Property taxes
6,100
Factory Repairs
800
Total manufacturing OH
93,000
Total manufacturing cost
303,400
Total cost WIP
312,900
Less: WIP 31/12/12
8,000
Cost of goods manufactured
3,04,900
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