Management of Thede Corporation has asked your help as an intern in preparing so
ID: 2492281 • Letter: M
Question
Management of Thede Corporation has asked your help as an intern in preparing some key reports for July. The beginning balance in the raw materials inventory account was $29,000. During the month, the company made raw materials purchases amounting to $55,000. At the end of the month, the balance in the raw materials inventory account was $37,000. Direct labor cost was $41,000 and manufacturing overhead cost was $61,000. The beginning balance in the work in process account was $22,000 and the ending balance was $23,000. The beginning balance in the finished goods account was $42,000 and the ending balance was $55,000. Sales totaled $230,000. Selling expense was $13,000 and administrative expense was $32,000. The net operating income for July was:
$28,000
$95,000
$50,000
$83,000
$28,000
$95,000
$50,000
$83,000
Explanation / Answer
Answer: The net operating income for July = $50,000
Statement of Cost Sheet Sl No Particulars Operation Amount $ 1 Beginning Inventory 29000 2 Purchase 55000 3 Sl no 1+ Sl No 2 84000 4 Ending Inventory 37000 5 Raw Material consumed Sl 3 - sl no 4 47000 6 Direct Labor Cost 41000 7 Prime Cost Sl no 5 + Sl no 6 88000 8 Manufacturing Overhead 61000 9 Beginning WIP 22000 10 Sl no 7 + Sl no 8+ Sl no 9 171000 11 Ending WIP 23000 12 Cost of goods manufactured Sl 10 - sl no 11 148000 13 Beginning Inventory - Finished Goods 42000 14 Ending Inventory - Finished Goods 55000 15 Sl no 12 + Sl no 13 - Sl no 14 135000 16 Selling Expenses 13000 17 Admin. Expenses 32000 18 Cost of goods sold Sl no 15 + Sl no 16+ Sl no 17 180000 19 Sales 230000 20 Net operating income Sl 19 - sl no 18 50000Related Questions
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