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

Required:

Prepare (a) a schedule of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c) the Inventory section of the balance sheet. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. “Less” or “Plus” will automatically appear if it is required. You will not need to enter colons (:) on the financial statements. Enter all amounts as positive numbers.

Labels
Direct materials
For the Month Ended March 31
Inventories
March 31
Operating expenses
Amount Descriptions
Beginning finished goods inventory
Beginning materials inventory
Beginning work in process inventory, March 1
Cost of finished goods available for sale
Cost of goods manufactured
Cost of goods sold
Cost of materials available for use
Cost of materials used
Direct labor
Ending finished goods inventory
Ending materials inventory
Ending work in process inventory
Factory overhead
Finished goods
Gross profit
Materials
Net income
Net loss
Purchases
Sales
Selling and administrative expenses
Total inventories
Total manufacturing costs
Total manufacturing costs incurred
Work in process

Prepare a schedule of cost of goods manufactured. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. “Less” or “Plus” will automatically appear if it is required. You will not need to enter colons (:) on the statement of cost of goods manufactured. Enter all amounts as positive numbers.

Zoe Corporation

Statement of Cost of Goods Manufactured

1
2
3
4
5
6
7
8
9
10
11
12
13

Prepare an income statement for the month ended March 31. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. “Less” or “Plus” will automatically appear if it is required. You will not need to enter colons (:) on the income statement.

Zoe Corporation

Income Statement

1
2
3
4
5
6
7
8
9
10
11

Prepare the Inventory section of the balance sheet. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. You will not need to enter colons (:) on the balance sheet.

Zoe Corporation

Partial Balance Sheet

1
2
3
4
5

Answer 1

Zoe Corporation
Statement of Cost of Goods Manufactured
For month of March
Labels	Amount Descriptions	Amount Descriptions
Direct materials
Beginning Material Inventory	$     6,000.00
Purchases	$ 92,000.00
Cost of materials available for use	$ 98,000.00
Ending material Inventory	$     8,000.00
Cost of material Used		$   90,000.00
Direct labor		$   25,000.00
Factory overhead		$   37,000.00
Total Manufacturing Cost Incurred		$ 152,000.00
Beginning Work in Progress Inventory , March 1		$   22,000.00
Total work in process during the period		$ 174,000.00
Ending Work in Progress Inventory		$   23,500.00
Costs of good manufactured		$ 150,500.00

Zoe Corporation
Statement of Cost Of Goods Sold
For month of March
Labels	Amount Descriptions
Beginning Finished Goods Inventory	$       21,000.00
Costs of good manufactured	$     150,500.00
Cost of finished goods available for sale	$     171,500.00
Ending Finished Goods Inventory	$       30,000.00
Cost of Goods Sold	$     141,500.00

Zoe Corporation
Income Statement
For month of March
Sales	$     257,000.00
Cost Of Goods Sold	$     141,500.00
Gross Profit	$     115,500.00
Selling and Administrative Expenses	$       79,000.00
Net Income	$       36,500.00

Zoe Corporation
Partial Balance Sheet
Assets
Current Assets
Inventories
Material Inventory	$          8,000.00
Work in Progress Inventory	$       23,500.00
Finished Goods Inventory	$       30,000.00