Question

The following information is available for Robstown Corporation for 20Y8:

Inventories	January 1	December 31
Materials	$351,000	$435,800
Work in process	625,200	590,400
Finished goods	607,400	571,000

	December 31
Advertising expense	$ 296,600
Depreciation expense-office equipment	43,560
Depreciation expense-factory equipment	55,880
Direct labor	669,000
Heat, light, and power-factory	22,060
Indirect labor	76,000
Materials purchased	658,200
Office salaries expense	183,300
Property taxes-factory	18,300
Property taxes-office building	31,200
Rent expense-factory	32,500
Sales	3,011,000
Sales salaries expense	417,000
Supplies-factory	16,000
Miscellaneous costs-factory	9,200

	Required:
	a. Prepare the 20Y8 statement of cost of goods manufactured. For those boxes in which you must enter subtracted or negative numbers use a minus sign.*
	b. Prepare the 20Y8 income statement. *Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Amount Descriptions

Amount Descriptions
Advertising expense
Cost of direct materials used in production
Cost of finished goods available for sale
Cost of goods manufactured
Cost of goods sold
Cost of materials available for use
Depreciation expense-factory equipment
Depreciation expense-office equipment
Direct labor
Finished goods inventory, December 31, 20Y8
Finished goods inventory, January 1, 20Y8
Gross profit
Heat, light, and power-factory
Indirect labor
Materials inventory, December 31, 20Y8
Materials inventory, January 1, 20Y8
Miscellaneous costs-factory
Net income
Office salaries expense
Property taxes-factory
Property taxes-office building
Purchases
Rent expense-factory
Sales
Sales salaries expense
Supplies-factory
Total manufacturing costs incurred in 20Y8
Total operating expenses
Work in process inventory, December 31, 20Y8
Work in process inventory, January 1, 20Y8

Statement of Cost of Goods Manufactured

a. Prepare the 20Y8 statement of cost of goods manufactured. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Robstown Corporation

Statement of Cost of Goods Manufactured

For the Year Ended December 31, 20Y8

1
2	Direct materials:
3
4
5
6
7
8
9	Factory overhead:
10
11
12
13
14
15
16
17	Total factory overhead
18
19	Total manufacturing costs
20
21

Income Statement

b. Prepare the 20Y8 income statement. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Robstown Corporation

Income Statement

For the Year Ended December 31, 20Y8

1
2	Cost of goods sold:
3
4
5
6
7
8
9	Operating expenses:
10	Administrative expenses:
11
12
13
14	Selling expenses:
15
16
17
18

Answer 1

--Requirement 'a'

	Robstown Corporation
	Statement of Cost of Goods Manufactured
	For the Year Ended December 31, 20Y8
1	Work in process inventory, January 1, 20Y8			$625,200
2	Direct materials:
3	Materials inventory, January 1, 20Y8	$351,000
4	Purchases	$658,200
5	Cost of materials available for use	$1,009,200
6	Materials inventory, December 31, 20Y8	($435,800)
7	Cost of direct materials used in production		$573,400
8	Direct labor		$669,000
9	Factory overhead:
10	Depreciation expense-factory equipment	$55,880
11	Heat, light, and power-factory	$22,060
12	Indirect labor	$76,000
13	Miscellaneous costs-factory	$9,200
14	Property taxes-factory	$18,300
15	Rent expense-factory	$32,500
16	Supplies-factory	$16,000
17	Total factory overhead		$229,940
18	Total manufacturing costs incurred in 20Y8			$1,472,340
19	Total manufacturing costs			$2,097,540
20	Work in process inventory, December 31, 20Y8			($590,400)
21	Cost of goods manufactured			$1,507,140

--Requirement 'b'

	Robstown Corporation
	Income Statement
	For the Year Ended December 31, 20Y8
1	Sales			$3,011,000
2	Cost of goods sold:
3	Finished goods inventory, January 1, 20Y8		$607,400
4	Cost of goods manufactured		$1,507,140
5	Cost of finished goods available for sale		$2,114,540
6	Finished goods inventory, December 31, 20Y8		($571,000)
7	Cost of Goods Sold			$1,543,540
8	Gross Profits			$1,467,460
9	Operating expenses:
10	Administrative expenses:
11	Depreciation expense-office equipment	$43,560
12	Office salaries expense	$183,300
13	Property taxes-office building	$31,200	$258,060
14	Selling expenses:
15	Sales salaries expense	$417,000
16	Advertising expense	$296,600	$713,600
17	Total operating expenses			$971,660
18	Net income			$495,800