Questions 9-10 (of 10) Problem 14-3A Schedule of cost of goods manufactured and
ID: 2330928 • Letter: Q
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Questions 9-10 (of 10) Problem 14-3A Schedule of cost of goods manufactured and income statement; inventory analysis LO P2, A1 [The following in tion applies to the questions displayed below $ 28,750 Direct labor s 6 Depreclation expense Selling equipment equipment 8,600 33,550 Indirect labor Miscellaneous production costs 8,425 7,350 Raw materials purchases Factory supplies Factory utilities Inventories Raw materials, December 31, 2014 Raw materials, December 31, 2015 Work in process, December 31, 2014 Work in process, December 31, 2015 Finished goods, December 31, 2014 Finished goods, December 31, 2015 used 925,000 22,000 26,100 33,000 Rent 166,850 Rent ex 15,700 Sales 167.350 Office space Rent space y building expense-Factory equipment 35,400 4,462,500 392,560 182,000 nse 136.490 manufactured and income statement; entory analysis LO P2, A1
Explanation / Answer
Manufacturing Statement
For Year Ended December 31, 2015
Direct materials
Raw materials inventory, December 31, 2014
166850
Raw materials purchases
925,000
Raw materials available for use
1,091,850
Less: Raw materials inventory, December 31, 2015
182,000
Direct materials used
909850
Direct labor
675,480
Factory overhead
Factory supervision
102,600
Factory supplies used
7,350
Factory utilities
33,000
Maintenance expense—Factory equipment
35,400
Rent expense—Factory building
76,800
Depreciation expense—Factory equipment
33,550
Indirect labor
56,875
Miscellaneous production costs
8,425
Total factory overhead costs
354,000
Total manufacturing costs
1,939,330
Add: Goods in process inventory, December 31, 2014
15,700
Total cost of goods in process
1,955,030
Less: Goods in process inventory, December 31, 2015
19,380
Cost of goods manufactured
Income Statement
For Year Ended December 31, 2015
Sales
4462500
Cost of goods sold
Cost of goods manufactured
1935650
Finished goods inventory, December 31, 2014
167,350
Goods available for sale
2,103,000
Less: Finished goods inventory, December 31, 2015
136,490
Cost of goods sold
1,966,510
Gross profit from sales
2,495,990
Operating expenses
Selling expenses
Depreciation expense—Selling equipment
8,600
Rent expense—Selling space
26,100
Sales salaries expense
392,560
Advertising expense
28,750
Total selling expenses
456,010
General and administrative expenses
Rent expense—Office space
22,000
Office salaries expense
63,000
Depreciation expense—Office equipment
7,250
Total general and administrative expenses
92,250
Total operating expenses
548,260
Income before state and federal taxes
1,947,730
Income taxes expense
233,725
Net income
1714005
1Manufacturing Statement
For Year Ended December 31, 2015
Direct materials
Raw materials inventory, December 31, 2014
166850
Raw materials purchases
925,000
Raw materials available for use
1,091,850
Less: Raw materials inventory, December 31, 2015
182,000
Direct materials used
909850
Direct labor
675,480
Factory overhead
Factory supervision
102,600
Factory supplies used
7,350
Factory utilities
33,000
Maintenance expense—Factory equipment
35,400
Rent expense—Factory building
76,800
Depreciation expense—Factory equipment
33,550
Indirect labor
56,875
Miscellaneous production costs
8,425
Total factory overhead costs
354,000
Total manufacturing costs
1,939,330
Add: Goods in process inventory, December 31, 2014
15,700
Total cost of goods in process
1,955,030
Less: Goods in process inventory, December 31, 2015
19,380
Cost of goods manufactured
1,935,650 2Income Statement
For Year Ended December 31, 2015
Sales
4462500
Cost of goods sold
Cost of goods manufactured
1935650
Finished goods inventory, December 31, 2014
167,350
Goods available for sale
2,103,000
Less: Finished goods inventory, December 31, 2015
136,490
Cost of goods sold
1,966,510
Gross profit from sales
2,495,990
Operating expenses
Selling expenses
Depreciation expense—Selling equipment
8,600
Rent expense—Selling space
26,100
Sales salaries expense
392,560
Advertising expense
28,750
Total selling expenses
456,010
General and administrative expenses
Rent expense—Office space
22,000
Office salaries expense
63,000
Depreciation expense—Office equipment
7,250
Total general and administrative expenses
92,250
Total operating expenses
548,260
Income before state and federal taxes
1,947,730
Income taxes expense
233,725
Net income
1714005
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