Several tems are omitted from the income statement and cost of goods manufacture

Question

Several tems are omitted from the income statement and cost of goods manufactured statement data for two off Company Company Materials inventory, December 3 Materials purchased Cost of direct materials used in production (a) 106,930 187,780 212,920 198,130 278,720 86,500 105,990 Factory overhead Total manufacturing costs incurred in December Total manufacturing costs Work in process inventory, December 1 Work in process inventory, December 31 (b) 612,260 705,290 705,300 141,950 228,060 119,770 (c) 606,580 124,940105.990 Finished goods inventory, December 1 Finished goods inventory, December 31 Cost of goods sold (d) 612,260 Operating expenses ( 210,080 Next

Explanation / Answer

1 Letter On Company Off Company a 63580 200620 Materials inventory = 73930+187780-198130 Direct Material used in production = Op Raw material + Purchases - Closing raw material = 94630+212920-106930 b 563350 305650 Total Manufacturing costs incurred = Materials used + Direct Labor + Factory overhead = 198130+278720+86500 Direct Labor = Total manufacturing costs-Material used-factory overhead - 612260-105990-200620 c 585530 $98,720 Cost of Goods Manufactured =Opening WIP+Manufacturing costs-Closing WIP - (141950+563350-119770) WIP ending = Cost of goods manufactured -Total Manufacturing costs d 579610 100310 Cost of Goods sold = Opening FG + Cost of goods manufactured-Closing FG - 124940+585530-130860 Finished Goods, Dec 31 = Cost of goods sold - Cost of goods manufactured- Finished Goods, Dec 1 e 510120 334040 Gross Profit = Sales - cost of Goods sold = (1089730-579610) Gross Profit - Sales - Cost of goods sold f 368170 123960 Net Income = Gross Profit-operating expenses = 510120-141950 Operating Expenses = Gross Profit- Net income 2 On Company Statement of Cost of Goods Manuafactured For the month Ended December 31 Work In Process Inventory, December 1 $141,950 Direct Materials Materials Inventory, December 1 $73,930 Purchases $187,780 Cost of materials available for use $261,710 Materials Inventory, December 31 $63,580 Cost of direct materials used in production $198,130 Direct Labor $278,720 Factory overhead $86,500 Total manufacturing costs incurred during December $563,350 Total manufacturing costs $705,290 Work In Process Inventory, December 31 $119,770 Cost of goods manufactured $585,520 On Company Income Statement For the month ended December 31 $1,089,730 Sales Cost of goods sold Finished goods inventory, Dec 1 $124,940 105990 Cost of goods manufactured $585,520 0 Cost of finished goods available for sale $710,460 105990 Finished goods inventory, Dec 31 $130,860 -506270 Cost of goods sold $579,600 612260 Gross Profit $510,130 Operating Expense $141,950 Net Income $368,180

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