Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing

Question

Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company

The following information is available for Deutsch Corporation for 2014:

Required:

1. Prepare the 2014 statement of cost of goods manufactured.

Deutsch Corporation

Statement of Cost of Goods Manufactured

For the Year Ended December 31, 2014

  

$  

Direct materials:

  

$  

  

  

  

$  

  

  

  

$  

  

  

Factory overhead:

  

$  

  

  

  

  

  

  

  

  

  

  

  

  

Total factory overhead

  

Total manufacturing costs incurred during the year

  

Total manufacturing costs

$  

  

  

Cost of goods manufactured

$  

2. Prepare the 2014 income statement.

Deutsch Corporation

Income Statement

For the Year Ended December 31, 2014

  

$  

Cost of good sold:

  

$  

  

  

  

$  

  

  

  

  

  

$  

Operating expenses:

Administrative expenses:

  

$  

  

  

  

  

$  

Selling expenses:

  

$  

  

  

  

Total operating expenses

  

  

$  

Inventories January 1 December 31 Materials $233,450 $284,810 Work in process 420,210 387,340 Finished goods 403,870 395,890

Explanation / Answer

Deutsch Corporation Cost of Goods Manufactured Schedule for the year ended December 31, 2014 Particulars Amount (in $) Amount (in $) Direct Material Used Beginning Raw Material Inventory, Jan 1              233,450 Add: Cost of Raw Material Purchased              430,060 Total Raw Materials available              663,510 Less: Ending Raw Materials Inventory, Dec 31              284,810 Total Raw Materials Used              378,700 Direct Labour              438,610 Manufacturing Overhead cost : Indirect Labor                51,270 Heat, Light and Power                14,530 Depreciation, factory equipment                36,740 Property taxes Factory                11,960 Rent expense - factory                20,220 Misc cost factory                  6,270 Supplies                  9,970              150,960 Total Manufacturing Cost              968,270 Add: Beginning work in process inventory, Jan 1              420,210          1,388,480 Less; Ending work in process inventory, Dec 31              387,340 Cost of Goods Manufactured          1,001,140 Deutsch Corporation Income Statement for the year ended December 31, 2014 Particulars Amount (in $) Amount (in $) Sales Revenue          2,013,610 Less: Cost of Goods Sold Beginning Finished Goods Inventry, Jan 1              403,870 Add: Cost of Goods Manufactured          1,001,140 Cost of Goods Available for Sale          1,405,010 Less:Ending Finished Goods Inventry, Dec 31              395,890          1,009,120 Gross Margin          1,004,490 Less: Operating Cost:                         -   Sales Salary Expense              247,220 Office Salary Expense              150,090 Property tax Office building                24,780 Depreciation office Equipment                27,340 Advertising Expense              193,390              642,820 Operating Income              361,670

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