Question

Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials inventory, March 1 6,000 Materials inventory, March 31 8,000 Direct labor 25,000 Factory overhead 37,000 Work in process inventory, March 1 22,000 Work in process inventory, March 31 23,500 Finished goods inventory, March 1 21,000 Finished goods inventory, March 31 30,000 Sales 257,000 Selling and administrative expenses 79,000 a. Prepare a schedule of cost of goods manufactured. Enter all amounts as positive numbers. Zoe Corporation Statement of Cost of Goods Manufactured For the Month Ended March 31 $ Direct Materials: $ $ Cost of direct materials used $ Total manufacturing costs incurred Total manufacturing costs $ Cost of goods manufactured $ b. Prepare an income statement for the month ended March 31. Enter all amounts as positive numbers. Zoe Corporation Income Statement For the Month Ended March 31 $ Cost of goods sold: $ $ Cost of goods sold Gross Profit $ Operating expenses: $ c. Prepare only the Inventory section of the balance sheet. Zoe Corporation Inventory Section of the Balance Sheet Inventories: Finished goods $ Work in process Materials Total inventories $

Answer 1

a.

Zoe Corporation
Statement of Cost of Goods Manufactured
For the Month Ended March 31
Direct materials:
Beginning materials inventory $	6000
Direct material purchases	92000
Direct materials available for use	98000
Ending materials inventory	8000
Direct materials used		90000
Direct labor		25000
Factory overhead		37000
Total manufacturing costs		152000
Beginning work in process inventory		22000
Total work in process inventory		174000
Ending work in process inventory		23500
Cost of goods manufactured		150500

b.

Zoe Corporation
Income Statement
For the Month Ended March 31
Sales		257000
Cost of goods sold:
Beginning finished goods	21000
Cost of goods manufactured	150500
Goods available for sale	171500
Ending finished goods	30000
Cost of goods sold		141500
Gross profit		115500
Operating expenses:
Selling and administrative expenses		79000
Net income $		36500

c.

Zoe Corporation
Inventory Section of the Balance Sheet
March 31
Inventories:
Finished goods	30000
Work in process	23500
Materials	8000
Total inventories $	61500