Question

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	$58,870		$80,060
Materials inventory, December 31	(a)		90,470
Materials purchased	149,530		(a)
Cost of direct materials used in production	157,770		(b)
Direct labor	221,940		180,140
Factory overhead	68,880		89,670
Total manufacturing costs incurred in December	(b)		517,990
Total manufacturing costs	561,620		710,930
Work in process inventory, December 1	113,030		192,940
Work in process inventory, December 31	95,370		(c)
Cost of goods manufactured	(c)		513,180
Finished goods inventory, December 1	99,490		89,670
Finished goods inventory, December 31	104,200		(d)
Sales	867,740		800,600
Cost of goods sold	(d)		517,990
Gross profit	(e)		(e)
Operating expenses	113,030		(f)
Net income	(f)		177,730

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
			$
Direct materials:
	$
	$
		$
Total manufacturing costs incurred during December
Total manufacturing costs			$
			$

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

On Company
Income Statement
For the Month Ended December 31
		$
Cost of goods sold:
	$
	$
		$
		$

Answer 1