Problem 15 Check course schedule for due date. Use the working papers provided T
ID: 2547496 • Letter: P
Question
Problem 15 Check course schedule for due date. Use the working papers provided The following data were taken from the records of Flexsteel Manufacturing Company for t year ended May 31, 2016. Factory Insurance Plant Manager's Salary Operating Expenses Sales Discounts Factory Property Taxes Raw Materials Purchases $7,000 4,000 30,000 12,900 100,000 475,000 2,500 5,000 6,000 1,000 67,500 28,000 2,000 27,000 Raw Materials $47,000 Factory Mach-Depreciation Raw Materials Finished Goods Finished Goods Inventory 6/1/15 Inventory 5/31/16 Inventory 6/1/15 Inventory 5/31/16 44,000 Factory Utilities 85,000 Sales Revenue 77,000 Short-term investments Work in Process 9,500 Factory Repairs 8,000 Caslh 18,000 Accounts Receivable Inventory 6/1/15 Work in Process Inventory 5/31/16 Direct Labor Indirect Labor 145,000 Prepaid Expenses Instructions (a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were dire materials.) (b) Prepare an entire income statement through net income (c) Prepare the current asset section of the balance sheet at May 31, 2016.Explanation / Answer
A Particulars Rs Opening Stock of Direct Material 47000 Add Purchase of Raw Material 67500 Less Closing Stock of Direct Material -44000 Raw Material Consumed 158500 Direct Wages 145000 Direct Expenses (after deducting prepaid expenses of 2000) 98000 Prime Cost 401500 Add Factory Overhead (Note 1) 78900 Add Opening Work in Progress 9500 Less Closing Work in Progress -8000 Factory Cost 481900 Add Admin Overhead 0 Cost of Goods Manufactured (answer of a) 481900 Add Cost of Finished goods of opening Stock 85000 Less Cost of Finished goods of Closing Stock -77000 Cost of Goods sold 971800 B Income Statement Particulars Rs Gross Sales 475000 Less Discount -2500 Net Sales 472500 Less Cost of Goods Manufactured (answer of a) -481900 Profit / Loss -9400 C Current Asset Particulars Rs Cash 28000 Perpaid Exp 2000 Short Term Investment 5000 Account Receivable 27000 Closing Stock- Finished Goods 77000 Closing Stock- Raw material 44000 Closing Stock- Work In progress 8000 TOTAL 191000 Note 1: Indirect Labour 18000 Factory Insurance 7000 Factory Mach Dep 4000 Plant Manager Salary 30000 Factory Utilites 12900 Factory Property Taxes 6000 Factory Repairs 1000