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Several items are omitted from the income statement and cost of goods manufactur

ID: 2521342 • 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 2016:

1

Prius Company

Volt Company

2

Materials inventory, December 1

$281,960.00

$179,000.00

3

Materials inventory, December 31

(a)

178,000.00

4

Materials purchased

712,200.00

341,200.00

5

Cost of direct materials used in production

751,600.00

(a)

6

Direct labor

1,059,200.00

(b)

7

Factory overhead

325,800.00

180,400.00

8

Total manufacturing costs incurred during December

(b)

1,032,000.00

9

Total manufacturing costs

2,677,600.00

1,475,500.00

10

Work in process inventory, December 1

541,000.00

443,500.00

11

Work in process inventory, December 31

452,000.00

(c)

12

Cost of goods manufactured

(c)

1,025,500.00

13

Finished goods inventory, December 1

478,200.00

205,000.00

14

Finished goods inventory, December 31

495,400.00

(d)

15

Sales

4,144,000.00

1,671,000.00

16

Cost of goods sold

(d)

1,053,500.00

17

Gross profit

(e)

(e)

18

Operating expenses

545,000.00

(f)

19

Net income

(f)

382,900.00

A. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

B. Prepare Volt Company’s statement of cost of goods manufactured for December. 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.

Score: 0/100

Volt Company

Statement of Cost of Goods Manufactured

For the Month Ended December 31, 2016

1

2

Direct materials:

3

4

5

6

7

8

9

10

11

Total manufacturing costs

12

13

C. Prepare Volt Company’s income statement for December. 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.

Score: 0/76

Volt Company

Income Statement

For the Month Ended December 31, 2016

1

2

Cost of goods sold:

3

4

5

6

7

8

9

10


1

Prius Company

Volt Company

2

Materials inventory, December 1

$281,960.00

$179,000.00

3

Materials inventory, December 31

(a)

178,000.00

4

Materials purchased

712,200.00

341,200.00

5

Cost of direct materials used in production

751,600.00

(a)

6

Direct labor

1,059,200.00

(b)

7

Factory overhead

325,800.00

180,400.00

8

Total manufacturing costs incurred during December

(b)

1,032,000.00

9

Total manufacturing costs

2,677,600.00

1,475,500.00

10

Work in process inventory, December 1

541,000.00

443,500.00

11

Work in process inventory, December 31

452,000.00

(c)

12

Cost of goods manufactured

(c)

1,025,500.00

13

Finished goods inventory, December 1

478,200.00

205,000.00

14

Finished goods inventory, December 31

495,400.00

(d)

15

Sales

4,144,000.00

1,671,000.00

16

Cost of goods sold

(d)

1,053,500.00

17

Gross profit

(e)

(e)

18

Operating expenses

545,000.00

(f)

19

Net income

(f)

382,900.00

Explanation / Answer

Prius Company Volt Company a) Materials inventory, December 1 $281,960 a) Materials inventory, December 1 $179,000 Material Purchased $712,200 Material Purchased $341,200 Raw Material Available $994,160 Raw Material Available $520,200 Less: Raw Material Used in production $751,600 Materials inventory, December 31 -$178,000 Materials inventory, December 31 $242,560 Raw Material Used in production $342,200 b) Total Manufaturing Cost incurred during Month $1,032,000 b)Raw Material Used in production $751,600 Less: Raw Material Used in production $342,200 Direct Labour $1,059,200 Fless: actory overhead $180,400 Factory overhead $325,800 Direc Labour $509,400 Total Manufaturing Cost incurred during Month $2,136,600 c)Total Manufaturing Cost incurred during Month $2,136,600 c)Total Manufaturing Cost incurred during Month $1,032,000 WIP, Inventory Dec1 $541,000 WIP, Inventory Dec1 $443,500 Less: WIP, Inventory Dec31 -$452,000 Less: Cost of Goods Manufactured -$1,025,500 Cost of Goods Manufactured $2,225,600 WIP, Inventory Dec31 $450,000 d. Cost of Goods Manufactured $2,225,600 d. Cost of Goods Manufactured $1,025,500 Finished Goods Inventory Dec1 $478,200 Finished Goods Inventory Dec1 $205,000 Less: Finished Goods Inventory Dec31 -$495,400 Less: Cost of Gooda Sold $1,053,500 Cost of Gooda Sold $2,208,400 Finished Goods Inventory Dec31 $177,000 e)Sales $4,144,000 e)Sales $1,671,000 Less: Cost of Goods Sold -$2,208,400 Less: Cost of Goods Sold -$1,053,500 Gross Profit $1,935,600 Gross Profit $617,500 f. Gross proft $1,935,600 f. Gross proft $617,500 Operating Expense -$545,000 Less: Net Income $382,900 Net Income $1,390,600 Operating Expense $234,600 Cost of Goods Manufactured Volts Company Materials inventory, December 1 $179,000 Less Materials inventory, December 31 $178,000 Materials purchased $341,200 Cost of direct materials used in production $342,200 Direct labor $509,400 Factory overhead $180,400 Total manufacturing costs incurred during December $1,032,000 Total manufacturing costs $1,475,500 Work in process inventory, December 1 $443,500 Less Work in process inventory, December 31 $450,000 Cost of goods manufactured $1,025,500 Income Statement- For Volt Company Sales $1,671,000 Less: Cost of Goods Sold -$1,053,500 Gross Profit $617,500 Less: Operating Expense $234,600 Net Income $382,900

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