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 Company		Off Company
Materials inventory, December 1	$83,640		$107,900
Materials inventory, December 31	(a)		121,930
Materials purchased	212,450		(a)
Cost of direct materials used in production	224,160		(b)
Direct labor	315,320		242,780
Factory overhead	97,860		120,850
Total manufacturing costs incurred in December	(b)		698,110
Total manufacturing costs	797,930		797,930
Work in process inventory, December 1	160,590		260,040
Work in process inventory, December 31	135,500		(c)
Cost of goods manufactured	(c)		691,640
Finished goods inventory, December 1	141,350		120,850
Finished goods inventory, December 31	148,040		(d)
Sales	1,232,850		1,079,000
Cost of goods sold	(d)		698,110
Gross profit	(e)		(e)
Operating expenses	160,590		(f)
Net income	(f)		239,540

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.		71,930		348,510
b.		637,340		334,480
c.		662,430		266,510
d.		655,740		114,380
e.		577,110		380,890
f.		416,520		141,350

2)	Cost of goods manufactured (On company)
	Work in process inventory,december 1							160,590
	Raw materials inventory,December 1					83,640
	materials purchased					212,450
	cost of raw materials available for use					296,090
	Raw materials inventory,December 31					71,930
	Cost of direct materials used in production						224,160
	Direct labor						315,320
	Factory overhead						97,860
	Total manufacturing cost incurred in December							637,340
	Total manufacturing cost							797,930
	work in process inventory ,December 31							135,500
	cost of goods manufactured							662,430

sales							1,232,850
Cost of goods sold
Finished goods inventory,December 1						141,350
cost of goods manufactured						662,430
cost of goods available for sale						803,780
Finished goods inventory,December 31						148,040
Cost of goods sold							655,740
Gross profit							577,110
less operating expense							160,590
net income							416,520