Doggie Delights manufactures its own brand of pet toys. At the end of June, 2019
ID: 2525122 • Letter: D
Question
Doggie Delights manufactures its own brand of pet toys. At the end of June, 2019 the accounting records showed the following:
Inventories:
Beginning
Ending
Direct Materials
$14,200
$ 9,600
Work-in-Process
0
3,600
Finished Goods
0
6,800
Other Information:
Direct materials purchases
40,000
Plant janitorial services
4,200
Sales salaries
6,000
Delivery costs
2,900
Sales revenue
206,000
Utilities for plant
10,200
Rent on plant
27,000
Customer service hotline costs
3,000
Direct labor
29,000
(a) Prepare a schedule of cost of goods manufactured for Doggie Delights and
(b) Prepare an income statement for Doggie Delights for the year ended June 30, 2019
Inventories:
Beginning
Ending
Direct Materials
$14,200
$ 9,600
Work-in-Process
0
3,600
Finished Goods
0
6,800
Other Information:
Direct materials purchases
40,000
Plant janitorial services
4,200
Sales salaries
6,000
Delivery costs
2,900
Sales revenue
206,000
Utilities for plant
10,200
Rent on plant
27,000
Customer service hotline costs
3,000
Direct labor
29,000
Explanation / Answer
cost of goods manufactured Direct materials used beginning direct materials 14,200 Add:direct material purchases 40,000 Raw materials avaialble for use 54,200 less:ending direct materials 9,600 Direct materials used 44,600 Direct labor 29,000 Factory overhead plant janitorial services 4,200 utilities for plant 10,200 Rent on plant 27,000 total factory overhead 41,400 total manufacturing costs 115,000 less :ending work in process 3,600 cost of goods manufactured 111,400 income statement sales revenue 206,000 less cost of goods sold beginning finished goods 0 Add cost of goods manufactured 111,400 cost of goods available for sale 111400 less:ending finished goods inventory 6,800 cost of goods sold 104,600 Gross profit 101,400 Selling expense Sales salaries 6,000 Delivery costs 2,900 customer service hotline costs 3,000 total selling expense 11,900 Net income 89,500
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