Question

Aikman Corporation has the following cost records for June 2020:

Indirect factory labour $ 4,500 Direct materials used 25,000 Work in process (6/1/16) 3,000 Work in process (6/30/16) 2,800 Finished goods (6/1/16) 5,000 Finished goods (6/30/16) 9,500 Factory utilities $  400 Depreciation, factory equipment 1,400 Direct labour 30,000 Maintenance, factory equipment 1,800 Indirect materials 2,200 Factory manager's salary 3,000

Instructions

(a) Prepare a cost of goods manufactured schedule for June 2020

(b) Prepare an income statement through gross profit for June 2020, assuming net sales are $87,100.

Answer 1

Answer:
(a)
Cost of Goods Manufactured Schedule For the month June 30
Direct Material Used		$ 25,000
Direct labor		$ 30,000
Factory Overheads :
Indirect factory labor	$ 4,500
Factory utilities	$ 400
Depreciation, factory equipment	$ 1,400
Maintenance, factory equipment	$ 1,800
Indirect materials	$ 2,200
Factory manager Salary	$ 3,000
Total overhead		$ 13,300
Total Manufacturing Costs		$ 68,300
Add: Beginning Work in Process		$ 3,000
Less: Ending Work in Process		($ 2,800)
Cost of Goods Manuaftured		$ 68,500
Particulars	Amount (in $ )
Beginning Finished goods	$ 5,000
Add: Cost of goods manufactured	$ 68,500
Cost of goods available for sale	$ 73,500
Less : Ending Finished goods	($9,500)
Cost of goods sold	$ 64,000
(b)
Income Statement (Partial) For the month June 30
Particulars	Amount (in $ )
Net Sales	$ 87,100
Less: Cost of Goods Sold	($64,000)
Gross Profit	$ 23,100