Instructions Several items are omitted from the income statement and ds manufact
ID: 2541991 • Letter: I
Question
Instructions Several items are omitted from the income statement and ds manufactured statement data for two different companies for the month of December 2016: On Company Off Company 2 Materials inventory, December 1 $65,800.00 $195,300.00 Materials inventory, December 31 4 Materials purchased 5 Cost of direct materials used in production 6 Direct labor 7 Factory overhead 8 | Total manufacturing costs incurred during December 9 Total manufacturing costs 10 Work in process inventory, December 1 1 Work in process inventory, December 31 12 Cost of goods manufactured 13 Finished goods inventory, December 1 4 Finished goods inventory, December 31 15 Sales 91,140.00 282,800.00 317,800.00 387,800.00 148,400.00 577,220.00 256,060.00 1,519,000.00 973,000.00 1,727,320.00 208,320.00 119,000.00 172,200.00 (C)00 224,000.00 197,400.00 1127,000.00 1,532020.00 269,080.00 1,944,320.00Explanation / Answer
1 On Company a) Material inventory 31 Dec Material Inventory 1st Dec 65,800 Add: Material Purchased 282,800 Less: Cost of direct Material used in Production 317,800 Material inventory 31 Dec 30,800 b) Total manufacturing cost incurred Cost of direct Material used in Production 317,800 Direct Labour 387,800 Factory Overhead 148,400 Total manufacturing cost incurred 854,000 c) Cost of goods manufactured Total manufacturing cost incurred 854,000 Add: WIP 1 Dec 119,000 Less: WIP 31 Dec 172,200 Cost of goods manufactured 800,800 d Cost of goods sold Cost of goods manufactured 800,800 Add: Finished inventory 1 dec 224000 Less: Finished inventory 31 dec 197400 Cost of goods sold 827,400 e Gross Profit Sales 1127000 less: Cost of goods sold 827,400 Gross Profit 299,600 f Net Income Gross Profit 299,600 Less: Operating Expense 117600 Net Income 182,000 B Statement of Cost of goods manufactured Cost of direct Material used in Production 317,800 Add: Direct Labour 387,800 Add: Factory Overhead 148,400 Total manufacturing cost incurred 854,000 Add: WIP 1 Dec 119000 Less: WIP 31 Dec 172200 Cost of goods manufactured 800800 C Income Statement Sales 1127000 less: Cost of goods sold: Cost of goods manufactured 800,800 Finished inventory 1 dec 224,000 Finished inventory 31 dec 197,400 827,400 Gross Profit 299,600 Less: Operating Expense 117600 Net Income 182,000 Off Company b) Cost of direct material used in production Total manufacturing cost incurred 1519000 Less: Direct Labour 577220 Less: Factory Overhead 256060 Cost of direct material used in production 685720 a) Material Purchased Cost of direct material used in production 685720 Add: Material inventory 31dec 91140 Less: Material inventory 1dec 195300 Material Purchased 581560 c) WIP 31DEC Total manufacturing cost 1727320 Less: Cost of goods manufactured 1532020 195300 d) Finished goods 31st dec Finished goods 1dec 269080 Add: Cost of goods manufactured 1532020 Less: Cost of goods sold 1545040 256060 e) Gross Profit Sales 1944320 less: Cost of goods sold 1545040 Gross Profit 399280 f) Operating Expenses Gross profit 399280 Less: Net Profit 164920 Operating Expnses 234360