In: Accounting
everal 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 | $85,120 | $108,950 | ||
Materials inventory, December 31 | (a) | 123,110 | ||
Materials purchased | 216,200 | (a) | ||
Cost of direct materials used in production | 228,120 | (b) | ||
Direct labor | 320,900 | 245,140 | ||
Factory overhead | 99,590 | 122,020 | ||
Total manufacturing costs incurred in December | (b) | 704,910 | ||
Total manufacturing costs | 812,040 | 967,480 | ||
Work in process inventory, December 1 | 163,430 | 262,570 | ||
Work in process inventory, December 31 | 137,890 | (c) | ||
Cost of goods manufactured | (c) | 698,370 | ||
Finished goods inventory, December 1 | 143,850 | 122,020 | ||
Finished goods inventory, December 31 | 150,660 | (d) | ||
Sales | 1,254,670 | 1,089,500 | ||
Cost of goods sold | (d) | 704,910 | ||
Gross profit | (e) | (e) | ||
Operating expenses | 163,430 | (f) | ||
Net income | (f) | 241,870 |
Required:
1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
2. Prepare On Company's statement of cost of goods manufactured for December.
3. Prepare On Company's income statement for December.
2.Cost of goods manufactured
On company | Off company | |||
Direct materials | ||||
Materials Inventory, December 1 | $85,120 | $108,950 | ||
Materials purchased | $216,200 | $351,910 | ||
Materials available for use | $301,320 | $460,860 | ||
Less: materials Inventory, December 31 | $73,200 | $123,110 | ||
Direct materials used | $228,120 | $337,750 | ||
Direct labor | $320,900 | $245,140 | ||
Factory overhead | $99,590 | $122,020 | ||
Total manufacturing costs incurred | $648,610 | $704,910 | ||
Work in process Inventory, December 1 | $163,430 | $262,570 | ||
Total manufacturing cots | $812,040 | $967,480 | ||
Less: Work-in-process inventory, December 31 | ($137,890) | $269,110 | ||
Cost of goods manufactured | $674,150 | $698,370 |
Statement of cost of goods sold
On compan | Off company | |
Finished goods inventory, December 1 | $143,850 | $122,020 |
Cost of goods manufactured | $674,150 | $698,370 |
Cost of goods available for sale | $818,000 | $820,390 |
Less: Finished goods Inventory, December 31 | ($150,660) | ($115,480) |
Cost of goods sold | $667,340 | $704,910 |
3.Income statement
On company | Off company | |
Sales | $1,254,670 | $1,089,500 |
Less: Cost of goods sold | ($667,340) | ($704,910) |
Gross profit | $587,330 | $384,590 |
Less: Operating expenses | ($163,430) | ($142,720) |
Net income | $423,900 | $241,870 |
1.
On company
a) $73,200
b) $648,610
c) $674,150
d) $150,660
e) $587,330
f) $423,900
Off company
a) $351,910
b) $123,110
c) $269,110
d) $115,480
e) $384,590
f) $142,720
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