MUST SHOW ALL WORK Chambers Manufacturing Firm had following information for Apr

Question

MUST SHOW ALL WORK

Chambers Manufacturing Firm had following information for April 2015:
Beginning Raw Materials Inventory                                 $ 25,000
Beginning Work-in-process Inventory                                             30,000
Beginning Finished Goods Inventory                                              32,000
Ending Raw Materials Inventory                                                       24,000
Ending Work-in-process Inventory                                                   28,000
Ending Finished Goods Inventory                                                    34,000
Raw materials purchased                                                             250,000
Assembly line labor costs                                                             175,000
Sales Revenue                                                                    875,000
Factory supplies used                                                                          4,500
Depreciation on factory                                                                      22,000
Depreciation on production machinery                                           35,000
Depreciation on sales office                                                             13,000
Depreciation on administrative equipment                                      9,000
Sales salaries                                                                                     78,000
Factory supervision                                                                             65,000
Factory security guard cost                                                                33,000
Office security guard cost                                                      28,000

Required:

Prepare a cost of goods manufactured schedule.

Prepare a cost of goods sold schedule.

Prepare an Income Statement.

Explanation / Answer

Cost of Goods Manufactured Schedule Beginning Raw material Inventory 25000 Add : Cost of raw materials purchased 250000 Total Raw material available 275000 Less : Ending Raw Material -24000        Total Raw material used 251000 Direct Labor 175000 Manufacturing Overhead      Indirect Labor 98000      Factory supplies used 4500      Depriciation - Factory Building 22000      Depriciation - Factory Equipment 35000 Total Manufacturing Overhead 159500 Add : Beginning Work - in -progress inventory 30000 Less : Ending Work - in -progress inventory -28000 2000 Cost of gooda manufactured 587500 Cost of goods sold schedule Cost of gooda manufactured 587500 Add :opening finished goods inventory 32000 Less : closing finished goods inventory -34000 Cost of goods sold 585500 Income Statement Revenue 875000 Cost of goods sold 585500 Gross Profit 289500 Administrative and Sales expenses Sales salaries 78000 office security guard 28000 Depriciation on sales office 13000 Depriciation on administrative equipment 9000 128000 Net Profit 161500 e

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