https/ F paamweb%2Findex.htm/%23 4 15, 16 The following selected account balance
ID: 2399180 • Letter: H
Question
https/ F paamweb%2Findex.htm/%23 4 15, 16 The following selected account balances are provided for Delray Mig s 1,170,eee 43,000 Work in process inventory,Dec. 31, 2816 Finished goods inventory, Dec. 31, 2816 164, 500 227,000 22,800 Direct labor Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and Raw materials inventory, Dec.31, 2017 Work in process inventory, Dec. 33, 2017 Finished goods inventory, Dec, 31, 2817 5,250 2,000 95,000 126,000 40,980 Prepare an income statement for Delray Mfg (a manufacturer). Income Statement 5 1,170,000 Cost of goods sold Coo of gods avallable for sale Cost of goods sold 2 os EEE NextExplanation / Answer
DELERAY MFG
Income Statement
For year ended December 31 2017
Sales
$ 1,170,000.00
Cost of Goods Sold
Opening Finished Goods Inventory
$ 62,900.00
Cost of Goods Manufactured
$ 533,650.00
Cost of Goods Available for sale
$ 596,550.00
Less: Closing Finished Goods Inventory
$ 68,100.00
Cost of Goods Sold
$ 528,450.00
Gross Profit
$ 641,550.00
Operating Expenses
Selling Expenses
Advertising expense
$ 95,000.00
Total Selling Expenses
$ 95,000.00
General and Administrative Expense
$ 126,000.00
Total Operating Expenses
$ 221,000.00
Operating Income
$ 420,550.00
Working Note: Calculation of Cost of Goods Manufactured
DELERAY MFG
Cost of Goods Manufactured
For year ended December 31 2017
Direct Material
Raw material Inventory December 31 2016
$ 43,000.00
Raw material Purchased
$ 164,500.00
Raw material available for use
$ 207,500.00
Less: Raw material Inventory December 31 2017
$ 46,900.00
Direct Material Used
$ 160,600.00
Direct labor
$ 227,000.00
Factory Overheads
Factory Computer Supplies Used
$ 22,600.00
Indirect labor
$ 51,000.00
Rent Expenses-factory Building
$ 52,000.00
Repair -factory Equipment
$ 5,250.00
Total factory overheads
$ 130,850.00
Total manufacturing Cost
$ 518,450.00
Add: Work in progress December 31 2016
$ 56,100.00
Less: Work in progress December 31 2017
$ 40,900.00
Cost of Goods Manufactured
$ 533,650.00
DELERAY MFG
Income Statement
For year ended December 31 2017
Sales
$ 1,170,000.00
Cost of Goods Sold
Opening Finished Goods Inventory
$ 62,900.00
Cost of Goods Manufactured
$ 533,650.00
Cost of Goods Available for sale
$ 596,550.00
Less: Closing Finished Goods Inventory
$ 68,100.00
Cost of Goods Sold
$ 528,450.00
Gross Profit
$ 641,550.00
Operating Expenses
Selling Expenses
Advertising expense
$ 95,000.00
Total Selling Expenses
$ 95,000.00
General and Administrative Expense
$ 126,000.00
Total Operating Expenses
$ 221,000.00
Operating Income
$ 420,550.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.