In: Accounting
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 | ? | ||||||
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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