Question

Manufacturing Income Statement, Statement of Cost of Goods Manufactured

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December.

	On Company		Off Company
Materials inventory, December 1	$66,090		$83,930
Materials inventory, December 31	(a)		94,840
Materials purchased	167,870		(a)
Cost of direct materials used in production	177,120		(b)
Direct labor	249,160		188,840
Factory overhead	77,330		94,000
Total manufacturing costs incurred in December	(b)		543,030
Total manufacturing costs	630,500		745,300
Work in process inventory, December 1	126,890		202,270
Work in process inventory, December 31	107,070		(c)
Cost of goods manufactured	(c)		537,990
Finished goods inventory, December 1	111,690		94,000
Finished goods inventory, December 31	116,980		(d)
Sales	974,170		839,300
Cost of goods sold	(d)		543,030
Gross profit	(e)		(e)
Operating expenses	126,890		(f)
Net income	(f)		186,320

Required:

1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

Letter	On Company	Off Company
a.	$	$
b.	$	$
c.	$	$
d.	$	$
e.	$	$
f.	$	$

2. Prepare On Company's statement of cost of goods manufactured for December.

On Company
Statement of Cost of Goods Manufactured
For the Month Ended December 31
Work in process inventory, December 1			$
Direct materials:
Materials inventory, December 1	$
Purchases
Cost of materials available for use	$
Less materials inventory, December 31
Cost of direct materials used in production		$
Direct labor
Factory overhead
Total manufacturing costs incurred during December
Total manufacturing costs			$
Less materials inventory, December 31
Cost of goods manufactured			$

3. Prepare On Company's income statement for December.

On Company
Income Statement
For the Month Ended December 31
Sales		$
Cost of goods sold:
Finished goods inventory, December 1	$
Cost of goods manufactured
Cost of finished goods available for sale	$
Less finished goods inventory, December 31
Cost of goods sold
Gross profit		$
Operating expenses
Net income		$

Answer 1