E19-12 Cepeda Corporation has the following cost records for June 2017. Indirect
ID: 2594775 • Letter: E
Question
E19-12 Cepeda Corporation has the following cost records for June 2017. Indirect factory labor Direct materials used Work in process, 6/1/17 Work in process, Finished goods, 6/1/17 Finished goods, 6/30/17 S 400 1,400 4,500 Factory utilities 3.000 Direct labor 5,000 Indirect materials 7,500 Factory manager's salary 20,000 Depreciation, factory equipment 6/30/17 3,800 Maintenance, factory equipment 1,800 2,200 3,000 Instructions (a) Prepare a cost of goods manufactured schedule for June 2017. (b) Prepare an income statement through gross profit for June 2017 assuming sales revenue is $92,100.Explanation / Answer
Cepeda Corporation
Statement of Cost of goods manufactured for the month ended June 2017
Direct materials $20000
Direct labor $40000
Prime cost $60000
Factory overheads:
Indirect factory labor $4500
Factory utilities $400
Depreciation and factory equipment $1400
Maintainence,factory equipment $1800
Indirect materials $2200
Factory manager's salary $3000
Total factory overhead ($13300)
Beginning work in process $3000
Ending work in process ($3800)
Cost of goods manufactured $45900.
2.
Income statement for the month ended June 2017
Sales revenue $92100
Cost of goods sold ($43400)
Gross profit $48700.
Cost of goods sold = $45900 + $5000 - $7500
= $43400.
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