Several items are omitted from the income statement and cost of goods manufactur
ID: 2540317 • 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
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
Explanation / Answer
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1 Pirus Company Vold Company Working Answer Working Answer 2 Material Inventory December 1 280280 179000 3 Material Inventory December 31 a. 2+5-4 240280 177500 4 Material Purchased 712000 340000 5 Cost of Direct Material Used inproduction 752000 a. Opening+Pur-Closing 179000+340000-177500 341500 6 Direct Labor 1059600 513900 7 Factory Overhead 325200 b. 8-5-6 179600 8 Total Manufacturing Cost incurred during December b 5+6+7 2136800 1035000 9 Total Manufacturing Cost 2676800 1479500 10 WIP Inventory December 1 540000 444500 11 WIP Inventory December 31 451400 C. 12-11 452000 12 Cost of Goods Manufactured c. 9-11 2225400 1027500 13 Finished Goods Inventory December 1 478400 201000 14 Finished GOods Inventory December 31 495200 d. 12+13-16 175000 15 Sales 4143000 1676500 16 Cost of goods Sold d. 12+13-14 2208600 1053500 17 Gross Profit e. 15-16 1934400 e. 15-16 623000 18 Operating Expense 540000 f. 17-19 240000 19 Net Income f. 17-18 1394400 383000 2 Cost of Goods Manufactured Direct Material Cost -Beginning Inventory 179000 -Purchases 340000 -Closing Inventory -177500 Direct Material Used 341500 Direct Labor Cost 513900 Factory Overhead 179600 Manufacturing Cost incured During December 1035000 Add: Beginning Work in process 444500 Total Manufacturing Cost 1479500 Less: Ending Work in process 452000 Cost of Goods Manufactured 1027500 3 Income Statement Sales 1676500 Cost of Goods Sold: -Beginning Finished Goods 201000 -Cost of Goods manufactured 1027500 -Ending Finished Goods -175000 Less ;Cost of Goods Sold 1053500 Gross Margin 623000 Less: Operating Expense 240000 Operating Income 383000Related Questions
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