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 the year ended August 31, 2019.

Raw Materials Inventory 9/1/18	$60,000	Factory Property Taxes	$8,000
Raw Materials Inventory 8/31/19	50,000	Factory Repairs	4,000
Finished Goods Inventory 9/1/18	100,000	Raw Materials Purchases	100,000
Finished Goods Inventory 8/31/19	95,000	Accounts Receivable	30,000
Work in Process Inventory 9/1/18	15,000	Sales Revenue	775,000
Work in Process Inventory 8/31/19	10,000	Sales Discounts	6,000
Direct Labor	180,000	Cash	50,000
Indirect Labor	22,000	Prepaid expenses	3,000
Factory Insurance	7,000	Operating expenses	200,000
Factory Mach-Depreciation	9,000	Income tax expense	5,000
Plant Manager’s Salary	46,000	Interest expense	1,000
Factory Utilities	17,000

Instructions

(a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were   direct materials.)

(b) Prepare an entire income statement through net income for the year ended August 31, 2019.

(c) Prepare the current asset section of the balance sheet at August 31, 2019.

Answer 1

(a) Flex steel Manufacturing Company

Schedule of Cost of Goods Manufactured

For the year Ended August 31,2019

Accounts	Amount	Amount
Raw Materials Inventory (9/1/18)	60,000
Add:- Raw Materials Purchases	100,000
Less:- Raw Material Inventory (8/31/19)	(50,000)
Raw Material used in Production		$110,000
Add:- Direct Labor	180,000
Factory Insurance	7,000
Factory Machine Depreciation	9,000
Factory Utilities	17,000
Factory Property Taxes	8,000
Factory Repairs	4,000
Total Manufacturing Cost		$335,000
Add:- Work in Process Inventory (9/1/18)	15,000
Less:- Work in Process Inventory (8/31/19)	(10,000)
Cost of Goods Manufactured		$340,000

Flex steel Manufacturing Company

Schedule of Cost of Goods Sold

For the year Ended August 31,2019

Accounts	Amount	Amount
Cost of Goods Manufactured	$340,000
Add:- Finished Goods Inventory (9/1/18)	100,000
Less:- Finished Goods Inventory (8/31/19)	(95,000)
Cost of Goods Sold		$345,000

(b) Flex steel Manufacturing Company

Income Statement

For the year Ended August 31,2019

Accounts	Amount	Amount
Sales Revenue	$775,000
Less:- Sales Discount	(6,000)
Net Sales Revenue	$769,000
Less:- Cost of Goods Sold	(345,000)
Gross Profit		$424,000
Less:- Expenses
Indirect Labor	22,000
Plant Manager's Salary	46,000
Operating Expenses	200,000
Interest Expenses	1,000
Income tax Expenses	5,000
Total Expenses		($274,000)

Net Income .		$150,000 .

(c) Flex steel Manufacturing Company

Partial Balance Sheet

August 31,2019

Accounts	Amount	Amount
Assets:-
Current Assets:-
Cash	50,000
Accounts Receivable	30,000
Prepaid Expenses	3,000
Inventory:-
Raw Materials Inventory (8/31/19)	50,000
Work in Process Inventory (8/31/19)	10,000
Finished Goods Inventory (8/31/19)	95,000
Total Current Assets		$238,000