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Income Statement for a Manufacturing Company Two items are omitted from each of

ID: 2339974 • Letter: I

Question

Income Statement for a Manufacturing Company

Two items are omitted from each of the following three lists of cost of goods sold data from a manufacturing company income statement. Determine the amounts of the missing items, identifying them by letter.

Finished goods inventory, June 1 $46,000 $16,100 (e) Cost of goods manufactured 230,000 (c) 56,400 Cost of finished goods available for sale (a) $153,000 $88,600 Finished goods inventory, June 30 53,500 32,100 (f) Cost of goods sold (b) (d) $81,500

Explanation / Answer

(a) Cost of finished goods available for sale = $46,000 + $230,000 = $276,000

(b) Cost of goods sold = $276,000 - $53,500 = $222,500

(c) Cost of goods manufactured = $153,000 - $16,100 = $136,900

(d) Cost of goods sold = $153,000 - $32,100 = $120,900

(e) Finished goods inventory, June 1 = $88,600 - $56,400 = $32,200

(f) Finished goods inventory, June 30 = $88,600 - $81,500 = $7,100