Several items are omitted from the income statement and cost of goods manufactur
ID: 2540285 • 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
$280,280.00
$179,000.00
3
Materials inventory, December 31
(a)
177,500.00
4
Materials purchased
712,000.00
340,000.00
5
Cost of direct materials used in production
752,000.00
(a)
6
Direct labor
1,059,600.00
(b)
7
Factory overhead
325,200.00
179,600.00
8
Total manufacturing costs incurred during December
(b)
1,035,000.00
9
Total manufacturing costs
2,676,800.00
1,479,500.00
10
Work in process inventory, December 1
540,000.00
444,500.00
11
Work in process inventory, December 31
451,400.00
(c)
12
Cost of goods manufactured
(c)
1,027,500.00
13
Finished goods inventory, December 1
478,400.00
201,000.00
14
Finished goods inventory, December 31
495,200.00
(d)
15
Sales
4,143,000.00
1,676,500.00
16
Cost of goods sold
(d)
1,053,500.00
17
Gross profit
(e)
(e)
18
Operating expenses
540,000.00
(f)
19
Net income
(f)
383,000.00
* 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.
Work in process inventory, December 31, 2016
A. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
f.
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.
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.
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
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
$280,280.00
$179,000.00
3
Materials inventory, December 31
(a)
177,500.00
4
Materials purchased
712,000.00
340,000.00
5
Cost of direct materials used in production
752,000.00
(a)
6
Direct labor
1,059,600.00
(b)
7
Factory overhead
325,200.00
179,600.00
8
Total manufacturing costs incurred during December
(b)
1,035,000.00
9
Total manufacturing costs
2,676,800.00
1,479,500.00
10
Work in process inventory, December 1
540,000.00
444,500.00
11
Work in process inventory, December 31
451,400.00
(c)
12
Cost of goods manufactured
(c)
1,027,500.00
13
Finished goods inventory, December 1
478,400.00
201,000.00
14
Finished goods inventory, December 31
495,200.00
(d)
15
Sales
4,143,000.00
1,676,500.00
16
Cost of goods sold
(d)
1,053,500.00
17
Gross profit
(e)
(e)
18
Operating expenses
540,000.00
(f)
19
Net income
(f)
383,000.00
Required: 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.* 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.
Amount Descriptions Cost of direct materials used in production Cost of finished goods available for sale Cost of goods manufactured Cost of goods sold Cost of materials available for use Direct Labor Factory overhead Finished goods inventory, December 1, 2016 Finished goods inventory, December 31, 2016 Gross profit Materials inventory, December 1, 2016 Materials inventory, December 31, 2016 Net income Operating expenses Purchases Sales Total manufacturing costs incurred during December Work in process inventory, December 1, 2016Work in process inventory, December 31, 2016
A. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
Letter Prius Company Volt Company a. b. c. d. e.f.
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.
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.
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
Explanation / Answer
A.Missing figures required are in Bold.
THEY ARE THE BALACING FIGURES OF THE WOWORKING!
Direct material
Manufacturing costs
Work in process
Finished Goods
B.
Cost of goods manufactured of Volt company
Opening material:$179000
Purchases:$340000
Cost of material available for use:$ 519000
Less: Closing Material:$177500
DirectMaterial used in production: $341500
Direct labour: $513900
Factory Overhead: $179600
Total manufacturing costs incurred: $1035000
Add: Opening WIP: $444500
Less: Closing WIP: $452000
Cost of goods manufactured: $1027500
C.Income statement of volt company
Sales:$1676500
Less:Openingstock:$ 201000
Less:Cost of Finished goods available for sales:$1027500
Add: Closing Stock:$ 175000
Costof goods sold: $1053500
Gross Profit:$623000
Less: operating exp:$24000
Net income:$383000
Pls give your feedback!! Happy Learning :)
Particular Prius Volt Particular Prius Volt Opening 280280 179000 Production 752000 341500(a) Purchase 712000 340000 Closing 240280(a) 177500 992280 519000 992280 519000Related Questions
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