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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

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13

14

15

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Total factory overhead

18

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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

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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 608,400 576,000

Explanation / 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