Question

1. 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 Company		Off Company
   Materials inventory, December 1	$55,060		$71,580
   Materials inventory, December 31	(a)		80,890
   Materials purchased	139,850		(a)
   Cost of direct materials used in production	147,560		(b)
   Direct labor	207,580		161,060
   Factory overhead	64,420		80,170
   Total manufacturing costs incurred in December	(b)		463,120
   Total manufacturing costs	525,280		635,630
   Work in process inventory, December 1	105,720		172,510
   Work in process inventory, December 31	89,200		(c)
   Cost of goods manufactured	(c)		458,830
   Finished goods inventory, December 1	93,050		80,170
   Finished goods inventory, December 31	97,460		(d)
   Sales	811,580		715,800
   Cost of goods sold	(d)		463,120
   Gross profit	(e)		(e)
   Operating expenses	105,720		(f)
   Net income	(f)		158,910

   Required:

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

   Letter	On Company	Off 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

letter		On		Off
		Company		Company
a.		47,350		231,200
b.		419,560		221,890
c.		436,080		176,800
d.		431,670		75,880
e.		379,910		252,680
f.		274,190		93,770

Cost of goods manufactured (On company)
Work in process inventory,december 1							105,720
Raw materials inventory,December 1					55,060
materials purchased					139,850
cost of raw materials available for use					194,910
Raw materials inventory,December 31					47,350
Cost of direct materials used in production						147,560
Direct labor						207,580
Factory overhead						64,420
Total manufacturing cost incurred in December							419,560
Total manufacturing cost							525,280
work in process inventory ,December 31							89,200
cost of goods manufactured							436,080

sales							811,580
Cost of goods sold
Finished goods inventory,December 1						93,050
cost of goods manufactured						436,080
cost of goods available for sale						529,130
Finished goods inventory,December 31						97,460
Cost of goods sold							431,670
Gross profit							379,910
less operating expense							105,720
net income							274,190

Working

Cost of goods manufactured (Off company)
Work in process inventory,december 1							172,510
Raw materials inventory,December 1					71,580
materials purchased					231,200
cost of raw materials available for use					302,780
Raw materials inventory,December 31					80,890
Cost of direct materials used in production						221,890
Direct labor						161,060
Factory overhead						80,170
Total manufacturing cost incurred in December							463,120
Total manufacturing cost							635,630
work in process inventory ,December 31							176,800
cost of goods manufactured							458,830
Cost of goods sold
Finished goods inventory,December 1						80,170
cost of goods manufactured						458,830
cost of goods available for sale						539,000
Finished goods inventory,December 31						75,880
Cost of goods sold						463,120
income statement
sales						715,800
less cost of goods sold						463,120
Gross profit						252,680
less operating expense						93,770
net income						158,910