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P1-4A Prepare a cost of goods manufactured schedule, a partial income statement, and a partial balance...

P1-4A Prepare a cost of goods manufactured schedule, a partial income statement, and a partial balance sheet
The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2017.
Raw Materials Inventory,7/1/16 $48,000 Factory Machinery Depreciation $16,000
Raw Materials Inventory, 6/30/17 39,600 Factory Utilities 27,600
Finished Goods Inventory, 7/1/16 96,000 Office Utilities Expense 8,650
Finished Goods Inventory, 6/30/17 75,900 Sales Revenue 534,000
Work in Process Inventory, 7/1/16 19,800 Sales Discounts 4,200
Work in Process Inventory, 6/30/17 18,600 Plant Manager's Salary 58,000
Direct Labor 139,250 Factory Property Taxes 9,600
Indirect Labor 24,460 Factory Repairs 1,400
Accounts Receivable 27,000 Raw Materials Purchases 96,400
Factory Insurance 4,600 Cash 32,000
Instructions
(a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.)
(b) Prepare an income statement through gross profit.
(c) Prepare the current assets section of the balance sheet at June 30, 2017.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
(a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.)
CLARKSON COMPANY
Cost of Goods Manufactured Schedule
For the Year Ended June 30, 2017
Work in process inventory, July 1, 2016 Value
Direct materials
     Raw materials inventory, July 1, 2016 Value
     Raw materials purchases Value
     Total raw materials available for use ?
     Less: Raw materials inventory, June 30, 2017 Value
     Direct materials used ?
Direct labor Value
Manufacturing overhead
     Plant manager's salary Value
     Factory utilities Value
     Indirect labor Value
     Factory machinery depreciation Value
     Factory property taxes Value
     Factory insurance Value
     Factory repairs Value
           Total manufacturing overhead ?
Total manufacturing costs ?
Total cost of work in process ?
Less: Work in process, June 30 Value
Cost of goods manufactured ?
(b) Prepare an income statement through gross profit.
CLARKSON COMPANY
(Partial) Income Statement
For the Year Ended June 30, 2017
Sales Revenues
     Sales Revenue Value
     Less: Sales discounts Value
     Net Sales ?
Cost of goods sold
     Finished goods inventory, July 1, 2016 Value
     Cost of goods manufactured Value
     Cost of goods available for sale ?
     Less: Finished goods inventory, June 30, 2017 Value
           Cost of goods sold ?
Gross profit ?
(c) Prepare the current assets section of the balance sheet at June 30, 2017.
CLARKSON COMPANY
(Partial) Balance Sheet
June 30, 2017
Assets
Current assets
     Cash Value
     Accounts Receivable Value
     Inventories
          Finished goods Value
          Work in process Value
          Raw materials Value ?
               Total current assets ?

Solutions

Expert Solution

Solution:-

a.

Clarkson Company
Cost of goods manufactured schedule
For the year ended june 30, 2014
Work in progress 7/1/16 19,800
Direct materials
Raw material inventory, 7/1/16 48,000
Raw material purchases 96,400
Total raw material available for use 144,400
Less raw material inventory 6/30/17 39,600
Direct material used 104,800
Direct labor 139,250
Manufacturing overhead
Plant manager's salary 58,000
Factory utilities 27,600
Indirect labor 24,460
Factory machinery depreciation 16,000
Factory property taxes 9,600
Factory insurance 4,600
Factory repairs 1,400
  Total manufacturing overhead 141,660
Total manufacturing costs 385,710
Total cost of work in process 405,510
Less: Work in process, June 30 18,600
Cost of goods manufactured 386,910

b.

CLARKSON COMPANY
(Partial) Income Statement
For the Year Ended June 30, 2017
Sales Revenues
Sales Revenue 534,000
Less: Sales discounts 4,200
Net Sales 529,800
Cost of goods sold
Finished goods inventory, July 1, 2016 96,000
Cost of goods manufactured 386,910
Cost of goods available for sale 482,910
Less: Finished goods inventory, June 30, 2017 75,900
Cost of goods sold 407,010
Gross profit 122,790

c.

CLARKSON COMPANY
(Partial) Balance Sheet
June 30, 2017
Assets
Current assets
Cash 32,000
Accounts Receivable 27,000
Inventories
Finished goods 75,900
Work in process 18,600
Raw materials 39,600 134,100
Total current assets 193,100

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ekkarill92 answered 2 years ago
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