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	$71,070		$93,810
Materials inventory, December 31	(a)		106,010
Materials purchased	180,520		(a)
Cost of direct materials used in production	190,470		(b)
Direct labor	267,930		211,070
Factory overhead	83,150		105,070
Total manufacturing costs incurred in December	(b)		606,950
Total manufacturing costs	678,000		833,030
Work in process inventory, December 1	136,450		226,080
Work in process inventory, December 31	115,130		(c)
Cost of goods manufactured	(c)		601,320
Finished goods inventory, December 1	120,110		105,070
Finished goods inventory, December 31	125,790		(d)
Sales	1,047,570		938,100
Cost of goods sold	(d)		606,950
Gross profit	(e)		(e)
Operating expenses	136,450		(f)
Net income	(f)		208,260

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