In: Accounting
The Ruritanian Chemical Company shows the following account balances for the month of May 2017 in Ruritanian dollars (R$). Calculate the cost of goods manufactured for May 2017. Also, prepare an income statement for May 2017. R$ Customer service cost 800 Direct manufacturing labour 5000 Depreciation plant and equipment 3000 Revenue 51000 Marketing and advertising 1800 Direct materials inventory 1.5.17 3000 Finished goods inventory 31.5.17 6000 Plant repairs and maintenance 3400 Plant utilities 5600 Direct material purchases 7000 Work in progress inventory 31.5.17 4000 Fire insurance plant 800 Indirect materials used 1000 General administrative costs 3000 Depreciation plant building 2000 Work in progress inventory 1.5.17 500 Finished goods inventory 1.5.17 2000 Direct materials inventory 31.5.17 1000 Indirect manufacturing labour 1200 Plant supervision 4000 Miscellaneous plant overhead 1000
Calaculation of cost of goods manufactured in the month of May-2017 | ||
Particulars | Amount ($) | Amount ($) |
Direct Materials | $ 9,000.00 | |
Direct material purchases | $ 7,000.00 | |
ADD- Opening Direct materials inventory | $ 3,000.00 | |
LESS- Closing Direct materials inventory | $(1,000.00) | |
Direct Labour | $ 5,000.00 | |
Prime cost | $ 14,000.00 | |
Factory Over heads | $ 22,000.00 | |
Depreciation plant and equipment | $ 3,000.00 | |
Depreciation plant building | $ 2,000.00 | |
Plant repairs and maintenance | $ 3,400.00 | |
Fire insurance plant | $ 800.00 | |
Indirect materials used | $ 1,000.00 | |
Indirect manufacturing labour | $ 1,200.00 | |
Plant utilities | $ 5,600.00 | |
Miscellaneous plant overhead | $ 1,000.00 | |
Plant supervision | $ 4,000.00 | |
Factory Cost | $ 36,000.00 | |
Work in progress inventory | $ (3,500.00) | |
ADD- Opening Work in progress inventory | $ 500.00 | |
LESS- Closing Work in progress inventory | $(4,000.00) | |
Finished goods | $ (4,000.00) | |
ADD- Opening Finished goods inventory | $ 2,000.00 | |
LESS- Closing Finished goods inventory | $(6,000.00) | |
Cost of Production | $ 28,500.00 | |
Cost of goods sold | $ 28,500.00 |
Above is the Cost sheet , Cost of Production is manufacturing cost for the month of May-2017
Income statement for the month of May-2017 | ||
Particulars | Amount ($) | Amount ($) |
A.Revenue | $ 51,000.00 | |
B.Expenses | $ 34,100.00 | |
Cost of goods sold | $ 28,500.00 | |
Customer service cost | $ 800.00 | |
Marketing and advertising | $ 1,800.00 | |
General Administration Costs | $ 3,000.00 | |
Profit (A - B) | $ 16,900.00 |