Question

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

Inventories	January 1	December 31
Materials	$78,750	$94,450
Work in process	108,600	96,800
Finished goods	113,750	109,100

	December 31
Advertising expense	$ 69,000
Depreciation expense-office equipment	22,750
Depreciation expense-factory equipment	14,860
Direct labor	184,350
Heat, light, and power-factory	5,950
Indirect labor	24,600
Materials purchased	122,200
Office salaries expense	77,750
Property taxes-factory	4,170
Property taxes-office building	13,200
Rent expense-factory	6,675
Sales	862,000
Sales salaries expense	138,500
Supplies-factory	5,000
Miscellaneous costs-factory	5,280

	Required:
A.	Prepare the 20Y8 statement of cost of goods manufactured.*
B.	Prepare the 20Y8 income statement.* * Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Enter all amounts as positive numbers. Be sure to complete the statement heading. Labels For the Year Ended December 31, 20Y8 For the Month Ended December 31 At Year Ended December 31, 20Y8 Amount Descriptions Advertising expense Cost of direct materials used 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 Total operating expenses work in process inventory, December 31, 20Y8 Work in process inventory, January 1, 20Y8 A. Prepare the 20Y8 statement of cost of goods manufactured. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Enter all amounts as positive numbers. Be sure to complete the statement heading. Robstown Corporation Statement of Cost of Goods Manufactured 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

B. Prepare the 20Y8 income statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Enter all amounts as positive numbers. Be sure to complete the statement heading.

Robstown Corporation

Income Statement

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

Robstown Corporation
Cost of Goods manufactured
For the year ended December 31, 20Y8
Labels	Amount Descriptions	Amount Descriptions
Direct materials
Materials inventory, January 1, 20Y8	$     78,750.00
Direct materials purchases	$   122,200.00
Cost of materials available for use	$   200,950.00
materials inventory, December 31, 20Y8	$     94,450.00
Cost of direct materials placed in production		$   106,500.00
Direct labor		$   184,350.00
Factory overhead
Indirect Labor	$     24,600.00
Depreciation Expenses-Manufacturing Equipment	$     14,860.00
Supplies factory	$        5,000.00
Heat light power- factory	$        5,950.00
Rent Expenses-Factory	$        6,675.00
Miscellaneous Cost Factory	$        5,280.00
Property taxes-factory	$        4,170.00
Total Factory Overheads		$     66,535.00
Total Manufacturing Cost		$   357,385.00
Add: Work in process inventory, January 1		$   108,600.00
Total work in process during the period		$   465,985.00
Less: work in process inventory, December 31, 20Y8		$     96,800.00
Costs of good manufactured		$   369,185.00

Robstown Corporation
Income Statement
For the year ended December 31, 20Y8
Sales		$     862,000.00
Cost of Goods Sold
Beginning Finished Goods Inventory	$ 113,750.00
Cost of goods Manufactured	$ 369,185.00
Goods Available for sale	$ 482,935.00
Less: Ending Finished Goods Inventory	$ 109,100.00
Cost of Goods Sold		$     373,835.00
Gross Profit from Sales		$     488,165.00
Operating Expenses
Administrative Expenses
Depreciation expense- Office Equipment	$    22,750.00
Office salaries expense	$    77,750.00
Property taxes-office building	$    13,200.00	$     113,700.00
Selling Expenses
Advertisement Expenses	$    69,000.00
Sales salaries expenses	$ 138,500.00	$     207,500.00
Total Operating expenses		$     321,200.00
Net Income		$     166,965.00