70.2K

Verified Solution

Link Copied!

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.

	On Company		Off Company
Materials inventory, December 1	$61,480		$83,610
Materials inventory, December 31	(a)		94,480
Materials purchased	156,160		(a)
Cost of direct materials used in production	164,770		(b)
Direct labor	231,780		188,120
Factory overhead	71,930		93,640
Total manufacturing costs incurred in December	(b)		540,960
Total manufacturing costs	586,520		742,460
Work in process inventory, December 1	118,040		201,500
Work in process inventory, December 31	99,600		(c)
Cost of goods manufactured	(c)		535,940
Finished goods inventory, December 1	103,900		93,640
Finished goods inventory, December 31	108,820		(d)
Sales	906,220		836,100
Cost of goods sold	(d)		540,960
Gross profit	(e)		(e)
Operating expenses	118,040		(f)
Net income	(f)		185,610

Required:

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

Letter	On Company	Off Company
a.	$	$
b.	$	$
c.	$	$
d.	$	$
e.	$	$
f.	$	$

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

On Company
Statement of Cost of Goods Manufactured
For the Month Ended December 31
Work in process inventory, December 1			$
Direct materials:
Materials inventory, December 1	$
Purchases
Cost of materials available for use	$
Less materials inventory, December 31
Cost of direct materials used in production		$
Direct labor
Factory overhead
Total manufacturing costs incurred during December
Total manufacturing costs			$
Less work in process inventory, December 31
Cost of goods manufactured			$

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

On Company
Income Statement
For the Month Ended December 31
Sales		$
Cost of goods sold:
Finished goods inventory, December 1	$
Cost of goods manufactured
Cost of finished goods available for sale	$
Less finished goods inventory, December 31
Cost of goods sold
Gross profit		$
Operating expenses
Net income		$

Answer & Explanation Solved by verified expert

See Answer