The following information is available for Satterfield’s Custom Glass for the fi

Question

The following information is available for Satterfield’s Custom Glass for the fiscal year ending December 31, 2014:

Prepare a schedule of cost of goods manufactured.

Prepare an income statement for fiscal 2014. Ignore income taxes.

Beg bal in WIP 215,400 end bal in WIP 297,300 Beginning balance in Finished Goods Inventory 503,300 Ending balance in Finished Goods Inventory 397,900 Direct material cost 2,502,800 Direct labor cost 3,001,700 Manufacturing overhead 1,691,000 Selling expenses 306,000 General and administrative expenses 499,200 Sales 8,450,800

Explanation / Answer

Satterfield's custom Glass

Schedule of Cost of Goods Manufactured

For the Year Ended December 31 204

Particulars

Amount

Amount

Beginning work in progress

                 215,400

Add: Manufacturing Cost

Direct Material

              2,502,800

Direct Labor

              3,001,700

Manufacturing Overhead

              1,691,000

              7,195,500

Total

              7,410,900

Less: Ending balance in work in process inventory

                 297,300

Cost of goods manufactured

              7,113,600

Satterfield's custom Glass

Income Statement

For the Year Ended December 31 204

Particulars

Amount

Amount

Sales

              8,450,800

Less: Cost of Goods sold

Beginning Finished Inventory

                 503,300

     + Cost of goods manufactured

              7,113,600

= Cost of Goods Available for sale

              7,616,900

Less:Ending Finised Goods inventory

               (397,900)

              7,219,000

Gross Profit

              1,231,800

Less: Non manufacturing Expenses

Selling Expenses

                 306,000

General and Administrative Expenses

                 499,200

Net Income

                 426,600

Satterfield's custom Glass

Schedule of Cost of Goods Manufactured

For the Year Ended December 31 204

Particulars

Amount

Amount

Beginning work in progress

                 215,400

Add: Manufacturing Cost

Direct Material

              2,502,800

Direct Labor

              3,001,700

Manufacturing Overhead

              1,691,000

              7,195,500

Total

              7,410,900

Less: Ending balance in work in process inventory

                 297,300

Cost of goods manufactured

              7,113,600

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