Question

Dantooine Company is a brand new company that started operations on August 1, 2019. Dantooine manufactures cold weather clothing. At the end of August , 2019, the accountant for Dantooine compiled the following information.

Item	Amount
Administrative Expense	$26,000
Direct Labor	$13,000
Ending Finished Goods	$13,000
Ending Raw Materials	$24,000
Ending Work-in-Process	$8,000
Manufacturing Overhead	$9,000
Raw Materials Purchases	$57,000
Sales Revenue	$125,000
Selling Expense	$28,000

Do not enter dollar signs or commas in the input boxes.
Do not use the negative sign.

a) Prepare a schedule of cost of goods manufactured for August.

Dantooine Manufacturing
Schedule of Cost of Goods Manufactured
For the Month Ended August 31, 2019
Work-in-Process, August 1		Answer
Direct Materials
Beginning raw materials	Answer
Raw material purchases	Answer
Raw materials available for use	Answer
Ending raw materials inventory	Answer
Direct Materials Requisitioned		Answer
Direct Labor		Answer
Total Factory Overhead		Answer
Ending Work-in-Process		Answer
Cost of Goods Manufactured		Answer

b) Prepare an income statement for August.

Dantooine Manufacturing
Income Statement
For the Month Ended August 31, 2019
Sales Revenue		Answer
Cost of Goods Sold
Beginning Finished Goods	Answer
Cost of Goods Manufactured	Answer
Ending Finished Goods	Answer	Answer
Gross Profit		Answer
Operating Expenses
Administrative Expense		Answer
Selling Expense		Answer
Net Income		Answer

Answer 1

a) Prepare a schedule of cost of goods manufactured for August.

Dantooine Manufacturing
Schedule of Cost of Goods Manufactured
For the Month Ended August 31, 2019
Work-in-Process, August 1		0
Direct Materials
Beginning raw materials	0
Raw material purchases	57000
Raw materials available for use	57000
Ending raw materials inventory	-24000
Direct Materials Requisitioned		33000
Direct Labor		13000
Total Factory Overhead		9000
Ending Work-in-Process		-8000
Cost of Goods Manufactured		47000

b) Prepare an income statement for August.

Dantooine Manufacturing
Income Statement
For the Month Ended August 31, 2019
Sales Revenue		125000
Cost of Goods Sold
Beginning Finished Goods	0
Cost of Goods Manufactured	47000
Ending Finished Goods	-13000	34000
Gross Profit		91000
Operating Expenses
Administrative Expense		26000
Selling Expense		28000
Net Income		37000