Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing
ID: 2452390 • Letter: S
Question
Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company
The following information is available for Deutsch Corporation for 2014:
Required:
1. Prepare the 2014 statement of cost of goods manufactured.
Deutsch Corporation
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 2014
$
Direct materials:
$
$
$
Factory overhead:
$
Total factory overhead
Total manufacturing costs incurred during the year
Total manufacturing costs
$
Cost of goods manufactured
$
2. Prepare the 2014 income statement.
Deutsch Corporation
Income Statement
For the Year Ended December 31, 2014
$
Cost of good sold:
$
$
$
Operating expenses:
Administrative expenses:
$
$
Selling expenses:
$
Total operating expenses
$
Inventories January 1 December 31 Materials $233,450 $284,810 Work in process 420,210 387,340 Finished goods 403,870 395,890Explanation / Answer
Deutsch Corporation Cost of Goods Manufactured Schedule for the year ended December 31, 2014 Particulars Amount (in $) Amount (in $) Direct Material Used Beginning Raw Material Inventory, Jan 1 233,450 Add: Cost of Raw Material Purchased 430,060 Total Raw Materials available 663,510 Less: Ending Raw Materials Inventory, Dec 31 284,810 Total Raw Materials Used 378,700 Direct Labour 438,610 Manufacturing Overhead cost : Indirect Labor 51,270 Heat, Light and Power 14,530 Depreciation, factory equipment 36,740 Property taxes Factory 11,960 Rent expense - factory 20,220 Misc cost factory 6,270 Supplies 9,970 150,960 Total Manufacturing Cost 968,270 Add: Beginning work in process inventory, Jan 1 420,210 1,388,480 Less; Ending work in process inventory, Dec 31 387,340 Cost of Goods Manufactured 1,001,140 Deutsch Corporation Income Statement for the year ended December 31, 2014 Particulars Amount (in $) Amount (in $) Sales Revenue 2,013,610 Less: Cost of Goods Sold Beginning Finished Goods Inventry, Jan 1 403,870 Add: Cost of Goods Manufactured 1,001,140 Cost of Goods Available for Sale 1,405,010 Less:Ending Finished Goods Inventry, Dec 31 395,890 1,009,120 Gross Margin 1,004,490 Less: Operating Cost: - Sales Salary Expense 247,220 Office Salary Expense 150,090 Property tax Office building 24,780 Depreciation office Equipment 27,340 Advertising Expense 193,390 642,820 Operating Income 361,670