In: Accounting
On Company |
Off Company |
|||
Materials inventory, December 1 | $64,830 | $85,580 | ||
Materials inventory, December 31 | (a) | 96,710 | ||
Materials purchased | 164,670 | (a) | ||
Cost of direct materials used in production | 173,740 | (b) | ||
Direct labor | 244,410 | 192,560 | ||
Factory overhead | 75,850 | 95,850 | ||
Total manufacturing costs incurred in December | (b) | 553,700 | ||
Total manufacturing costs | 618,470 | 618,470 | ||
Work in process inventory, December 1 | 124,470 | 206,250 | ||
Work in process inventory, December 31 | 105,020 | (c) | ||
Cost of goods manufactured | (c) | 548,570 | ||
Finished goods inventory, December 1 | 109,560 | 95,850 | ||
Finished goods inventory, December 31 | 114,750 | (d) | ||
Sales | 955,590 | 855,800 | ||
Cost of goods sold | (d) | 553,700 | ||
Gross profit | (e) | (e) | ||
Operating expenses | 124,470 | (f) | ||
Net income | (f) | 189,990 |
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.
On Company:
Cost of direct materials used in production = Materials
inventory, December 1 + Materials purchased - Materials inventory,
December 31
$173,740 = $64,830 + $164,670 - Materials inventory, December
31
Materials inventory, December 31 = $55,760
Total manufacturing costs incurred in December = Cost of direct
materials used in production + Direct labor + Factory
overhead
Total manufacturing costs incurred in December = $173,740 +
$244,410 + $75,850
Total manufacturing costs incurred in December = $494,000
Cost of goods manufactured = Total manufacturing costs - Work in
process inventory, December 31
Cost of goods manufactured = $618,470 - $105,020
Cost of goods manufactured = $513,450
Cost of goods sold = Finished goods inventory, December 1 + Cost
of goods manufactured - Finished goods inventory, December 31
Cost of goods sold = $109,560 + $513,450 - $114,750
Cost of goods sold = $508,260
Gross profit = Sales - Cost of goods sold
Gross profit = $955,590 - $508,260
Gross profit = $447,330
Net income = Gross profit - Operating expenses
Net income = $447,330 - $124,470
Net income = $322,860
Off Company:
Total manufacturing costs incurred in December = Cost of direct
materials used in production + Direct labor + Factory
overhead
$553,700 = Cost of direct materials used in production + $192,560 +
$95,850
Cost of direct materials used in production = $265,290
Cost of direct materials used in production = Materials
inventory, December 1 + Materials purchased - Materials inventory,
December 31
$265,290 = $85,580 + Materials purchased - $96,710
Materials purchased = $276,420
Cost of goods manufactured = Total manufacturing costs - Work in
process inventory, December 31
$548,570 = $618,470 - Work in process inventory, December 31
Work in process inventory, December 31 = $69,900
Cost of goods sold = Finished goods inventory, December 1 + Cost
of goods manufactured - Finished goods inventory, December 31
$553,700 = $95,850 + $548,570 - Finished goods inventory, December
31
Finished goods inventory, December 31 = $90,720
Gross profit = Sales - Cost of goods sold
Gross profit = $855,800 - $553,700
Gross profit = $302,100
Net income = Gross profit - Operating expenses
$189,990 = $302,100 - Operating expenses
Operating expenses = $112,110
Answer 2.
Answer 3.