Question

StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March:

	Beginning Inventory			Ending Inventory
Raw materials	$	29,600		$	26,700
Work in process		21,400			46,400
Finished goods		78,900			68,600

Additional information for the month of March follows:

Raw materials purchases	$	41,900
Indirect materials used		2,000
Direct labor		63,900
Manufacturing overhead applied		36,500
Selling, general, and administrative expenses		23,500
Sales revenue		236,800

Required:
1. Based on the above information, prepare a cost of goods manufactured report.

2. Based on the above information, prepare an income statement for the month of March.

Based on the above information, prepare a cost of goods manufactured report.

	STORSMART COMPANY Cost of Goods Manufactured Report For the Month of March Direct Materials Used in Production Total Current Manufacturing Costs $0 Total Work in Process $0 Cost of Goods Manufactured

Based on the above information, prepare an income statement for the month of March.

	STORSMART COMPANY Income Statement For the Month of March Less: Cost of Goods Sold Cost of Goods Sold Net Income (Loss) from Operations

Answer 1

Cost of Goods manufactured Schedule:
Direct Material:
Beginning inventory of RM	29600
Add: Purchase		41900
Total RM available for use	71500
Less: Ending inventory of RM	26700
RM Used in production	44800
Less: Issued as indirect material	2000
Direct Material used in Production	42800
Direct labour cost			63900
Manufacturing Oh applied		36500
Total Current Manufacturing cost			143200
Add: Beginning Work in process inventory		21400
Total Work in process inventory			164600
Less: Ending inventory of WIP			46400
Cost of goods manufactured			118200
Income Statement
Sales revenue				236800
Less: Cost of goods sold
Beginning inventory of FG		78900
Add: Cost of goods manufactured		118200
Total cost of goods available for sale	197100
Less: Ending inventory of FG		68600
Cost of goods sold				128500
Gross Profit				108300
Less: Selling admin expense			23500
Net income				84,800