Prepare a Cost of goods manufactured, a Cost of goods sold and an income Stateme
ID: 2594025 • Letter: P
Question
Prepare a Cost of goods manufactured, a Cost of goods sold and an income Statement for June for Kiera’s Kakes based on the following information:
Sales Revenue: $4,000,000
Raw Materials purchases: $800,000
Direct Labor: $200,000
Selling, General, Administrative Expenses: $500,000
Ending Finished Goods Inventory: $300,000
Indirect Labor: $50,000
Beginning Raw materials inventory: $200,000
Factory Depreciation: $30,000
Ending work in process inventory: $500,000
Indirect materials: $40,000
Factory Rent: $30,000
Beginning work in process inventory: $400,000
Factory utilities: $20,000
Beginning finished goods inventory: $400,000
Factory insurance: $10,000
Ending Raw materials Inventory: $100,000
Tax rate = 30%
1. Prepare a Cost of goods manufactured, a Cost of goods sold and an income Statement for June for Kiera's Kakes based on the following information: Sales Revenue: $4,000,000 Raw Materials purchases: $800,000 Direct Labor: $200,000 Selling, General, Administrative Expenses: S500,000 Ending Finished Goods Inventory: $300,000 Indirect Labor: $50,000 Beginning Raw materials inventory: $200,000 Factory Depreciation: $30,000 Ending work in process inventory: $500,000 Indirect materials: $40,000 Factory Rent: $30,000 Beginning work in process inventory: $400,000 Factory utilities: $20,000 Beginning finished goods inventory: $400,000 Factory insurance: $10,000 Ending Raw materials Inventory: $100,000 Tax rate = 30%Explanation / Answer
Cost of Goods Manufactured For the year ended Beginning raw materials inventory $200,000 Purchases of raw materials $800,000 Total direct materials available $1,000,000 Less: ending inventory of raw materials -$100,000 Total raw materials used in production $900,000 Direct Labor $200,000 Manufacturing overhead $180,000 Total manufacturing costs $1,280,000 Add: beginning work in process $400,000 $1,680,000 Less: ending work in process -$500,000 Cost of goods manufactured $1,180,000 Manufacturing overhead Indirect materials $40,000 Indirect manufacturing labor $50,000 Depreciation of factory equipment $30,000 Factory Rent $30,000 Factory Utilities $20,000 Factory Insurance $10,000 $180,000 Statement of Cost of Goods Sold For the year ended December 31, 2016 Cost of goods manufactured $1,180,000 Beginning finished goods inventory $400,000 Finished goods available $1,580,000 Ending finished goods inventory -$300,000 Cost of goods sold $1,280,000 Income Statement For the year ended December 31, 2018 Sales Revenue $4,000,000 Cost of goods sold $1,280,000 Gross Profit $2,720,000 Selling, general & admin expenses $500,000 Operating income $2,220,000 Other income and expenses Interest expenses $0 Income before tax $2,220,000 Tax expenses $666,000 Net income for the year $1,554,000