Question

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020.

Raw Materials Inventory 7/1/19		$55,300		Factory Insurance		$5,100
Raw Materials Inventory 6/30/20		43,200		Factory Machinery Depreciation		17,800
Finished Goods Inventory 7/1/19		98,300		Factory Utilities		31,700
Finished Goods Inventory 6/30/20		20,800		Office Utilities Expense		9,250
Work in Process Inventory 7/1/19		25,900		Sales Revenue		563,200
Work in Process Inventory 6/30/20		21,100		Sales Discounts		4,500
Direct Labor		142,050		Plant Manager’s Salary		64,200
Indirect Labor		24,660		Factory Property Taxes		9,910
Accounts Receivable		36,900		Factory Repairs		1,900
				Raw Materials Purchases		98,000
				Cash		40,800

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, 2020. (List Current Assets in order of liquidity.)

Answer 1

Answer-a)-

CLARKSON COMPANY
SCHEDULE OF COST OF GOODS MANUFACTURED
FOR THE YEAR ENDED JUNE 30,2020
PARTICULARS	AMOUNT
	$
Direct materials
Beginnig raw materials	55300
Add- Purchases	98000
Less- Ending raw materials	43200
Raw materials used	110100
Direct labor	142050
Manufacturing overhead
Factory insurance	5100
Depreciation, plant,building & equipment	17800
Factory utilities	31700
Plant manager's salary	64200
Factory repairs	1900
Indirect labor	24660
Factory property taxes	9910
Total manufacturing overhead	155270
Total Manufacturing costs	407420
Add- Beginning work in process	25900
Less- Ending raw work in process	21100
Cost of goods manufactured	412220

b)-

CLARKSON COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED JUNE 30,2020
PARTICULARS	AMOUNT	AMOUNT
	$	$
Sales revenues		558700
Sales revenues (Gross)	563200
Less- Sales Discounts	4500
Less- Cost of goods sold
Cost of goods manufactured	412220
Add- Beginning finished goods inventory	98300
Less- Ending finished goods inventory	20800
Cost of goods sold		489720
Gross profit		68980

c)-

CLARKSON COMPANY
BALANCE SHEET (PARTIAL)
JUNE 30,2020
Assets	Amount	Amount
	$	$
Current Assets
Cash		40800
Accounts receivable		36900
Inventory		85100
Raw materials	43200
Work in process	21100
Finished goods	20800
Totals		162800