Several items are omitted from the income statement and cost of goods manufactur
ID: 2487004 • Letter: S
Question
Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December 2014:
Required:
Hint(s)
1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
GrantCompany McClellan
Company Materials inventory, December 1 $65,100 $88,540 Materials inventory, December 31 (a) 100,050 Materials purchased 165,350 199,220 Cost of direct materials used in production 174,470 (a) Direct labor 245,430 (b) Factory overhead 76,170 99,160 Total manufacturing costs incurred during December (b) 572,850 Total manufacturing costs 621,060 786,230 Work in process inventory, December 1 124,990 213,380 Work in process inventory, December 31 105,460 (c) Cost of goods manufactured (c) 567,540 Finished goods inventory, December 1 110,020 99,160 Finished goods inventory, December 31 115,230 (d) Sales 959,570 885,400 Cost of goods sold (d) 572,850 Gross profit (e) (e) Operating expenses 124,990 (f) Net income (f) 196,560
Explanation / Answer
Grant Company Cost of Goods Manufactured Schedule for the year ended December 31, 2014 Particulars Amount (in $) Amount (in $) Direct Material Used Beginning Raw Material Inventory, dec 1 65,100 Add: Cost of Raw Material Purchased 165,350 Total Raw Materials available 230,450 Less: Ending Raw Materials Inventory, Dec 31 55,980 Total Raw Materials Used 174,470 Direct Labour 245,430 Manufacturing Overhead cost : Factory Overhead 76,170 Manufacturing Cost incurred during december 496,070 Add: Beginning work in process inventory, Dec 1 124,990 Total Manufacturing cost 621,060 Less; Ending work in process inventory, Dec 31 105,460 Cost of Goods Manufactured 515,600 Grant Company Income Statement for the year ended December 31, 2014 Particulars Amount (in $) Amount (in $) Sales Revenue 959,570 Less: Cost of Goods Sold Beginning Finished Goods Inventry, Dec 1 110,020 Add: Cost of Goods Manufactured 515,600 Cost of Goods Available for Sale 625,620 Less:Ending Finished Goods Inventry, Dec 31 115,230 510,390 Gross Margin 449,180 Less: Operating Cost: 124,990 Net income 324,190 McClellan Company 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 88,540 Add: Cost of Raw Material Purchased 199,220 Total Raw Materials available 287,760 Less: Ending Raw Materials Inventory, Dec 31 100,050 Total Raw Materials Used 187,710 Direct Labour 285,980 Manufacturing Overhead cost : Factory Overhead 99,160 Manufacturing Cost incurred during december 572,850 Add: Beginning work in process inventory, Jan 1 213,380 Total Manufacturing Cost 786,230 Less; Ending work in process inventory, Dec 31 218,690 Cost of Goods Manufactured 567,540 McClellan Company Income Statement for the year ended December 31, 2014 Particulars Amount (in $) Amount (in $) Sales Revenue 885,400 Less: Cost of Goods Sold Beginning Finished Goods Inventry, Dec 1 99,160 Add: Cost of Goods Manufactured 567,540 Cost of Goods Available for Sale 666,700 Less:Ending Finished Goods Inventry, Dec 31 93,850 572,850 Gross Margin 312,550 Less: Operating Cost: 115,990 Operating Income 196,560 Missing Items Letter Grant Company McClellan Company a 55,980 187,710 b 496,070 285,980 c 515,600 218,690 d 510,390 93,850 e 449,180 312,550 f 324,190 115,990
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