The following information is available for The NewQuest Corporation for 2016: Am
ID: 2399779 • Letter: T
Question
The following information is available for The NewQuest Corporation for 2016:
Amount Descriptions
Statement of Cost of Goods Manufactured
A. Prepare the 2016 statement of cost of goods manufactured. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Enter all amounts as positive numbers.
The NewQuest Corporation
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 2016
1
2
Direct materials:
3
4
5
6
7
8
9
Factory overhead:
10
11
12
13
14
15
16
17
Total factory overhead
18
19
Total manufacturing costs
20
21
Income Statement
B. Prepare the 2016 income statement. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Enter all amounts as positive numbers.
The NewQuest Corporation
Income Statement
For the Year Ended December 31, 2016
1
2
Cost of goods sold:
3
4
5
6
7
8
9
Operating expenses:
10
Administrative expenses:
11
12
13
Inventories January 1 December 31 Materials $351,000 $436,800 Work in process 631,800 592,800 Finished goods 608,400 576,000Explanation / Answer
Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Cost of Goods Manufactured: Finished goods inventory, beginning 608400 Work in process inventory, beginning 631800 Direct materials: Direct materials inventory, beginning 351000 Direct materials purchases 659800 Cost of direct materials available for use 1010800 Direct materials inventory, ending -436800 Cost of direct materials placed in production 574000 Direct labor 670800 Depreciation expense-factory equipment 56160 Heat, light, and power-factory 22460 Indirect labor 78750 Property taxes-factory 18500 Rent expense-factory 32000 Supplies-factory 15400 Miscellaneous costs-factory 9500 Total manufacturing costs 1477570 Total work in process during period 2109370 Work in process inventory, ending -592800 Cost of goods manufactured 1516570 Cost of finished goods available for sale 2124970 Finished goods inventory, ending -576000 Cost of goods sold 1548970 Income Statement: Sales Revenue 3010000 Less: Cost of Goods Sold: COGS 1548970 1548970 Gross Margin 1461030 Less: Operating Expense Advertising 296400 Depreciation - office equipment 42120 Office salaries expense 185000 Property taxes-office building 32400 Sales salaries expense 420000 Total Operating Expense 975920 Net Income 485110
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