1. determine the amounts of the missing items, identity by letter. 2. prepare Vo

Question

1. determine the amounts of the missing items, identity by letter.
2. prepare Volt company's statement of cost of goods manufactured for December.
3. prepare Volt company's income statement for December.

Manufacturing Income Statemert, Statement of Cust of Gnods Manufactured Several iterms are eritted from the income statement and cost of goods manufactured stecemenit Volt Company s 177000 180,000 342,000 Company Materials inventory December 1 280,280 712,800 1,058,400 Materlaks inventory, December 31 o Materials purchased Cast of direct materials used in production Direct abor Factory overead Total manufacturing costs incurred during Decembor Total marufacturing costs Work in process inventory, December Work in prexess inventory, Decomber 3 Cost of goods manufactured Finished goods inventory, December 1 Rrished goods inventory, December 31 Sales Cost of goods sold Gross proft Operating expensies Net icome 327,600 180,000 1,035,000 ,477,500 442500 2,678,400 453,600 1,024,500 204,000 475,700 496,800 4,140,000 1675,500 1,051,500 540,000 384000 Required 1. Derermine the ampurts cfthe mssng rems, identitying them by locter, Eriter all amounts as posit

Explanation / Answer

Particulars

Pritus Company

Volt Company

Material Inventory December 1

$280280

$177000

Material Inventory December 31

$240680

$180000

Material Purchased

$712800

$342000

Cost of Direct Material used in Production

$752400

$339000

Direct Labor

$1058400

$516000

Factory Overhead

$327600

$180000

Total Manufacturing Cost incurred during December

$2138400

$1035000

Total Manufacturing Costs

$2678400

$1477500

Work in Process inventory, December 1

$540000

$442500

Work in Process inventory, December 31

$453600

$453000

Cost of goods Manufactured

$2224800

$1024500

Finished goods inventory December 1

$475200

$204000

Finished goods inventory December 31

$496800

$177000

Sales

$41,40,000

$1675500

Cost of Goods Sold

$22,03,200

$1051500

Gross Profit

$1936800

$624000

Operating Expenses

$540000

$240000

Net Income

$1396800

$384000

Material Inventory December 31 = Material Inventory December1 +Material Purchased- Cost of Direct Material used in Production

                                                            =$280280+$712800-$752400=$240680

Cost of Direct Material used in Production= Material Inventory December1 +Material Purchased- Material Inventory December 31

                                                = $177000+$342000-$180000=$339000

Total manufacturing Cost incurred during December= Cost of Direct material used in Production+Direct labor+Factory Overhead         

                                                                        =$752400+$1058400+$327600=$2138400

Direct labor= Total manufacturing Cost incurred during December-( Cost of Direct material used in Production+Factory Overhead)   =$1035000-($180000+$339000)=$516000

Work in Process inventory, December 31= Total Manufacturing Costs -Cost of goods manufactured

                                                =$1477500-$1024500=$453000

Cost of goods manufactured     = Total Manufacturing Costs - Work in Process inventory,December 31

                                                =$2678400-$453600

                                                =$2224800

Cost of goods Manufactured+ Finished goods inventory December 1- Finished goods inventory December 31= Cost of Goods Sold

                        =$2224800+$475200-$496800

                        =$2203200

            Finished goods inventory December 31= Cost of goods Manufactured+ Finished goods inventory December 1- Cost of Goods Sold

            =$1024500+$204000-$1051500

            =$177000

Statement of Cost of Goods manufactured for December

Volt Company

Work in Process inventory, December 1

$442500

Cost of Direct Material used in Production

$339000

Direct Labour

$516000

Factory Overhead

$180000

Total manufacturing Costs Incurred in December

$1035000

Total Manufacturing Costs

$1477500

LessWork in Process inventory, December 31

$453000

Cost of Goods manufactured for December

$1024500

Income Statement as on December 31

Volt Company

Sales

$1675500

Cost of goods Sold

Finished goods inventory December 1

$204000

Add Cost of goods Manufactured

$1024500

Total goods Available for Sale

$1228500

Less Finished goods inventory December 31

$177000

$1051500

Gross Profit

$624000

Operating Expenses

$240000

Net Income

$384000

Particulars

Pritus Company

Volt Company

Material Inventory December 1

$280280

$177000

Material Inventory December 31

$240680

$180000

Material Purchased

$712800

$342000

Cost of Direct Material used in Production

$752400

$339000

Direct Labor

$1058400

$516000

Factory Overhead

$327600

$180000

Total Manufacturing Cost incurred during December

$2138400

$1035000

Total Manufacturing Costs

$2678400

$1477500

Work in Process inventory, December 1

$540000

$442500

Work in Process inventory, December 31

$453600

$453000

Cost of goods Manufactured

$2224800

$1024500

Finished goods inventory December 1

$475200

$204000

Finished goods inventory December 31

$496800

$177000

Sales

$41,40,000

$1675500

Cost of Goods Sold

$22,03,200

$1051500

Gross Profit

$1936800

$624000

Operating Expenses

$540000

$240000

Net Income

$1396800

$384000

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