The following information is available for The NewQuest Corporation for 2016: In
ID: 2459691 • Letter: T
Question
The following information is available for The NewQuest Corporation for 2016:
Inventories
January 1
December 31
December 31
none
X
Amount Descriptions
In CengageNOW, an Amount Description is a text entry other than an Account that has an amount associated with it.
none
X
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.
Question not attempted.
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
Solution
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
Points:
Feedback
Check My Work
none
X
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.
Question not attempted.
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
14
Selling expenses:
15
16
17
18
Solution
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
14
Selling expenses:
15
16
17
18
Points:
Feedback
Check My Work
Inventories
January 1
December 31
Materials $351,000 $436,800 Work in process 631,800 592,800 Finished goods 608,400 576,000Explanation / Answer
The NewQuest Corporation Amount Amount Statement of Cost of Goods Manufactured, For the Year Ended December 31, 2016 Direct materials: Materials Purchased 6,59,800.00 Add:Opening Stock of Material 3,51,000.00 Less:Closing Stock of Material -4,36,800.00 Material Consumed 5,74,000.00 Direct labor 6,70,800.00 Prime Cost 12,44,800.00 Factory overhead: Depreciation expense-factory equipment 56,160.00 Heat, light, and power-factory 22,460.00 Indirect labor 78,750.00 Property taxes-factory 18,500.00 Rent expense-factory 32,000.00 Supplies-factory 15,400.00 Miscellaneous costs-factory 9,500.00 Factory Overhead 2,32,770.00 Total Manufacturing Cost 14,77,570.00 Add: Opening WIP 6,31,800.00 Less: Closing WIP -5,92,800.00 Cost Of Goods Manufactured 15,16,570.00 The NewQuest Corporation Income Statement, For the Year Ended December 31, 2016 Amount Amount Amount Sales 30,10,000.00 Cost of goods sold: Cost of direct materials used 5,74,000.00 Direct labor 6,70,800.00 Factory Overhead 2,32,770.00 Total Manufacturing Cost 14,77,570.00 Add: Opening WIP 6,31,800.00 Less: Closing WIP -5,92,800.00 Cost of goods manufactured 15,16,570.00 Add: Opening FG 6,08,400.00 Less: Closing FG -5,76,000.00 Cost of goods sold 15,48,970.00 Gross profit 14,61,030.00 Operating expenses: Administrative expenses: Depreciation expense-office equipment 42,120 Office salaries expense 1,85,000 Property taxes-office building 32,400 Total Administrative Expenses 2,59,520 Selling expenses: Sales salaries expense 4,20,000 Total Operating Expenss 6,79,520 Net Income 7,81,510.00
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