Question

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2017.

Raw Materials		Factory Insurance	$ 4,600
Inventory 7/1/16	$ 48,000	Factory Machinery
Raw Materials		Depreciation	16,000
Inventory 6/30/17	39,600	Factory Utilities	27,600
Finished Goods		Office Utilities Expense	8,650
Inventory 7/1/16	96,000	Sales Revenue	534,000
Finished Goods		Sales Discounts	4,200
Inventory 6/30/17	75,900	Plant Manager's Salary	58,000
Work in Process		Factory Property Taxes	9,600
Inventory 7/1/16 Factory Repairs	19,800	Factory Repairs	1,400
Work in Process		Raw Materials Purchases	96,400
Inventory 6/30/17	18,600	Cash	32,000
Direct Labor	139,250
Indirect Labor	24,460
Accounts Receivable	27,000

Instructions (a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.) (a) CGM $386,910 (b) Prepare an income statement through gross profit. (b) Gross profit $122,790 (c) Prepare the current assets section of the balance sheet at June 30, 2017. (c) Current assets $193,100

Answer 1

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Clarkson Company
Cost of goods manufactured	Amount $	Amount $
Work in process inventory, July 1, 2016		19,800.00
Raw material inventory, July 1, 2016	48,000.00
Raw material Purchases	96,400.00
Total Raw material available for use	144,400.00
Less: Raw material inventory, June 30, 2017	39,600.00
Direct materials used		104,800.00
Direct Labor		139,250.00
Manufacturing Overhead
Plant manager's salary	58,000.00
Factory utilities	27,600.00
Indirect Labor	24,460.00
Depreciation	16,000.00
Factory Property taxes	9,600.00
Factory Insurance	4,600.00
Factory repairs	1,400.00
Total Manufacturing Overhead		141,660.00
Total Manufacturing costs		385,710.00
Total cost of work in process		405,510.00
Less: Work in process inventory, June 30 2017		18,600.00
Cost of goods manufactured		386,910.00
Income Statement	Amount $	Amount $
Sales Revenues
Sales Revenues	534,000.00
Less: Sales discounts	4,200.00
Net Sales		529,800.00
Cost of goods sold
Finished goods inventory, July 1, 2016	96,000.00
Cost of goods manufactured	386,910.00
Cost of goods available for sale	482,910.00
Less: Finished goods inventory, June 30 2017	75,900.00
Cost of goods sold		407,010.00
Gross Profit		122,790.00
Current Assets	Amount $	Amount $
Cash		32,000.00
Accounts Receivable		27,000.00
Inventories
Finished goods	75,900.00
Work in process	18,600.00
Raw materials	39,600.00	134,100.00
Total Current Assets		193,100.00