Question

Manufacturing Income Statement, Reports the total cost of making products that are available for sale during the period.Statement of Cost of Goods Manufactured

Several items are omitted from the income statement and The total cost of making and finishing a product.cost of goods manufactured statement data for two different companies for the month of December.

	On Company		Off Company
Materials inventory, December 1	$82,350		$105,410
Materials inventory, December 31	(a)		119,110
Materials purchased	209,170		(a)
Cost of direct materials used in production	220,700		(b)
Direct labor	310,460		237,170
Factory overhead	96,350		118,060
Total manufacturing costs incurred in December	(b)		682,000
Total manufacturing costs	785,620		936,040
Work in process inventory, December 1	158,110		254,040
Work in process inventory, December 31	133,410		(c)
Cost of goods manufactured	(c)		675,680
Finished goods inventory, December 1	139,170		118,060
Finished goods inventory, December 31	145,760		(d)
Sales	1,213,840		1,054,100
Cost of goods sold	(d)		682,000
Gross profit	(e)		(e)
Operating expenses	158,110		(f)
Net income	(f)		234,010

Required:

1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

Letter	On Company	Off Company
a.	$	$
b.	$	$
c.	$	$
d.	$	$
e.	$	$
f.	$	$

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2. Prepare On Company's statement of cost of goods manufactured for December.

On Company
Statement of Cost of Goods Manufactured
For the Month Ended December 31
Indirect labor Machinery depreciation Supplies Work in process inventory, December 1			$
Direct materials:
Direct labor Factory overhead Materials inventory, December 1 Work in process, December 31	$
Factory overhead Operating expenses Purchases Sales
Cost of direct materials used in production Cost of goods manufactured Cost of goods sold Cost of materials available for use	$
Less Indirect labor Less materials inventory, December 31 Less work in process inventory, December 1 Less work in process, December 31
Cost of direct materials used in production Cost of goods manufactured Cost of goods sold Cost of materials available for use		$
Cost of goods sold Direct labor Indirect labor Work in process inventory, December 1
Cost of materials available for use Direct materials Factory overhead Purchases
Total manufacturing costs incurred during December
Total manufacturing costs (choose 1)			$
Less cost of materials available for use Less direct materials Less materials inventory, December 31 Less work in process inventory, December 31
Cost of direct materials used in production Cost of goods manufactured Cost of goods sold Cost of materials available for use			$

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3. Prepare On Company's income statement for December.

On Company
Income Statement
For the Month Ended December 31 (choose 1)
Cost of goods sold Gross profit Indirect labor Sales		$
Cost of goods sold: (choose 1)
Finished goods inventory, December 1 Finished goods inventory, December 31 Operating expenses Sales	$
Cost of direct materials used in production Cost of goods manufactured Cost of goods sold Cost of materials available for use
Cost of direct materials used in production Cost of finished goods available for sale Cost of goods manufactured Cost of materials available for use	$
Less finished goods inventory, December 1 Less finished goods inventory, December 31 Less operating expenses Less sales
Cost of direct materials used in production Cost of goods manufactured Cost of goods sold Cost of materials available for use
Cost of goods sold Gross profit Operating expenses Sales		$
Direct labor Factory overhead Finished goods inventory, December 1 Operating expenses
Net income Net loss		$

Answer 1

1)	letter		On		Off
			Company		Company
	a.		70,820		340,470
	b.		627,510		326,770
	c.		652,210		260,360
	d.		645,620		111,740
	e.		568,220		372,100
	f.		410,110		138,090

2)	Cost of goods manufactured (On company)
	Work in process inventory,december 1							158,110
	Raw materials inventory,December 1					82,350
	materials purchased					209,170
	cost of raw materials available for use					291,520
	Raw materials inventory,December 31					70,820
	Cost of direct materials used in production						220,700
	Direct labor						310,460
	Factory overhead						96,350
	Total manufacturing cost incurred in December							627,510
	Total manufacturing cost							785,620
	work in process inventory ,December 31							133,410
	cost of goods manufactured							652,210

sales							1,213,840
Cost of goods sold
Finished goods inventory,December 1						139,170
cost of goods manufactured						652,210
cost of goods available for sale						791,380
Finished goods inventory,December 31						145,760
Cost of goods sold							645,620
Gross profit							568,220
less operating expense							158,110
net income							410,110

working notes

Cost of goods manufactured (Off company)
Work in process inventory,december 1							254,040
Raw materials inventory,December 1					105,410
materials purchased					340,470
cost of raw materials available for use					445,880
Raw materials inventory,December 31					119,110
Cost of direct materials used in production						326,770
Direct labor						237,170
Factory overhead						118,060
Total manufacturing cost incurred in December							682,000
Total manufacturing cost							936,040
work in process inventory ,December 31							260,360
cost of goods manufactured							675,680
Cost of goods sold
Finished goods inventory,December 1						118,060
cost of goods manufactured						675,680
cost of goods available for sale						793,740
Finished goods inventory,December 31						111,740
Cost of goods sold						682,000
income statement
sales						1,054,100
less cost of goods sold						682,000
Gross profit						372,100
less operating expense						138,090
net income						234,010