Question

Manufacturing Income Statement, Statement of Cost of Goods Manufactured

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December:

On
CompanyOff
Company

Materials inventory, December 1$75,080 $96,850

Materials inventory, December 31(a) 109,440

Materials purchased190,700 (a)

Cost of direct materials used in production201,210 (b)

Direct labor283,050 217,910

Factory overhead87,840 108,470

Total manufacturing costs incurred in December(b) 626,620

Total manufacturing costs716,250 716,250

Work in process inventory, December 1144,150 233,410

Work in process inventory, December 31121,630 (c)

Cost of goods manufactured(c) 620,810

Finished goods inventory, December 1126,890 108,470

Finished goods inventory, December 31132,890 (d)

Sales1,106,680 968,500

Cost of goods sold(d) 626,620

Gross profit(e) (e)

Operating expenses144,150 (f)

Net income(f) 215,010

Required:

1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

LetterOn CompanyOff Company

a.$$

b.$$

c.$$

d.$$

e.$$

f.$$

2. Prepare On Company's statement of cost of goods manufactured for December.

On Company

Statement of Cost of Goods Manufactured

For the Month Ended December 31

$

Direct materials:

$

$

$

Total manufacturing costs incurred during December

Total manufacturing costs$

$

3. Prepare On Company's income statement for December.

On Company

Income Statement

For the Month Ended December 31

$

Cost of goods sold:

$

$

$

$

Answer 1

1.

letters	on company($)	off company($)
a	64570	312830
b	572100	300240
c	738770	328850
d	732770	102660
e	373910	341880
f	229760	126870

note:-

the above datas are traced from below table

particulars	on company	off company
material inventory,december 1	75080	96850
material inventory december 31	64570	109440
material purchased	190700	312830
cost of direct material used in production	201210	300240
direct labour	283050	217910
factory overhead	87840	108470
total manufacturing cost in december	572100	626620
total manufacturing costs	716250	716250
work in process inventory,december 1	144150	233410
work in process inventory,december 31	121630	328850
cost of goods manufactured	738770	620810
finished goods inventory,december 1	126890	108470
finished goods inventory,december 31	132890	102660
sales	1106680	968500
cost of goods sold	732770	626620
gross profit	373910	341880
operating expenses	144150	126870
net income	229760	215010

2.On Company's statement of cost of goods manufactured for December.

particulars	on company($)
cost of direct material used in production	201210
add:-direct labour	283050
add:-factory overhead	87840
total manufacturing cost in december	572100
total manufacturing costs	716250
add:-work in process inventory,december 1	144150
less:-work in process inventory,december 31	121630
cost of goods manufactured	738770

3. On Company's income statement for December.

particulars		on company($)
sales		1106680
less:-cost of goods sold
cost of goods manufactured	738770
add:-finished goods inventory,december 1	126890
less:-finished goods inventory,december 31	132890	732770
gross profit		373910
less:-operating expenses		144150
net income		229760