id number 123456 ey Manufacturing Company is a producer of music compact discs (
ID: 2340713 • Letter: I
Question
id number 123456
ey Manufacturing Company is a producer of music compact discs (CDs) and tapes. The following account balances are for the year ended December 31, 2017 Administrative expenses Depreciation expense -Manufacturing equipment Direct labor Manufacturing supplies expense Indirect labor Direct materials purchases Rent expense-Factory Sales 60,000 50,000 468,000 40,000 36,000 Plug in the las 6 digits of your ID) 28,000 1,400,000 72,000 126,000 Selling expense Other manufacturing overhead Beginning inventories, January 1 Direct materials Work in process Finished goods Ending inventories, December 31 Direct materials Work in process 56,000 Finished goods Instructions: 14,000 20,000 128,000 44,000 (Plug in the last 5 digits of your ID) Prepare a statement of cost of goods manufactured for Presley Manufacturing Company for the year Prepare an income statement for the year ended December 31Explanation / Answer
Presley Manufacturing Company
Cost of Goods manufactured Budget
For the year ended December 31, 2017
Labels
Amount Descriptions
Amount Descriptions
Direct materials
Direct materials inventory, January 1
$ 14,000.00
Direct materials purchases
$ 123,456.00
Cost of direct materials available for use
$ 137,456.00
Direct materials inventory, December 31
$ 44,000.00
Cost of direct materials placed in production
$ 93,456.00
Direct labor
$ 468,000.00
Factory overhead
Indirect Material Cost
$ 36,000.00
Depreciation Expenses-Manufacturing Equipment
$ 50,000.00
Manufacturing Supplies Expense
$ 40,000.00
Rent Expenses-Factory
$ 28,000.00
Other manufacturing Overheads
$ 126,000.00
Total Factory Overheads
$ 280,000.00
Total Manufacturing Cost
$ 841,456.00
Add: Work in process inventory, January 1
$ 20,000.00
Total work in process during the period
$ 861,456.00
Less: Work in process inventory, December 31
$ 56,000.00
Costs of good manufactured
$ 805,456.00
Presley Manufacturing Company
Income Statement
For the year ended December 31, 2017
Sales
$ 1,400,000.00
Cost of Goods Sold
Beginning Finished Goods Inventory
$ 128,000.00
Cost of goods Manufactured
$ 805,456.00
Goods Available for sale
$ 933,456.00
Less: Ending Finished Goods Inventory
$ 23,456.00
Cost of Goods Sold
$ 910,000.00
Gross Profit from Sales
$ 490,000.00
Operating Expenses
Selling Expenses
$ 72,000.00
Advertisement Expenses
$ 60,000.00
Total Operating expenses
$ 132,000.00
Net Income
$ 358,000.00
Presley Manufacturing Company
Cost of Goods manufactured Budget
For the year ended December 31, 2017
Labels
Amount Descriptions
Amount Descriptions
Direct materials
Direct materials inventory, January 1
$ 14,000.00
Direct materials purchases
$ 123,456.00
Cost of direct materials available for use
$ 137,456.00
Direct materials inventory, December 31
$ 44,000.00
Cost of direct materials placed in production
$ 93,456.00
Direct labor
$ 468,000.00
Factory overhead
Indirect Material Cost
$ 36,000.00
Depreciation Expenses-Manufacturing Equipment
$ 50,000.00
Manufacturing Supplies Expense
$ 40,000.00
Rent Expenses-Factory
$ 28,000.00
Other manufacturing Overheads
$ 126,000.00
Total Factory Overheads
$ 280,000.00
Total Manufacturing Cost
$ 841,456.00
Add: Work in process inventory, January 1
$ 20,000.00
Total work in process during the period
$ 861,456.00
Less: Work in process inventory, December 31
$ 56,000.00
Costs of good manufactured
$ 805,456.00
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