Question

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December 2016:

1		Prius Company	Volt Company
2	Materials inventory, December 1	$281,960.00	$179,000.00
3	Materials inventory, December 31	(a)	178,000.00
4	Materials purchased	712,200.00	341,200.00
5	Cost of direct materials used in production	751,600.00	(a)
6	Direct labor	1,059,200.00	(b)
7	Factory overhead	325,800.00	180,400.00
8	Total manufacturing costs incurred during December	(b)	1,032,000.00
9	Total manufacturing costs	2,677,600.00	1,475,500.00
10	Work in process inventory, December 1	541,000.00	443,500.00
11	Work in process inventory, December 31	452,000.00	(c)
12	Cost of goods manufactured	(c)	1,025,500.00
13	Finished goods inventory, December 1	478,200.00	205,000.00
14	Finished goods inventory, December 31	495,400.00	(d)
15	Sales	4,144,000.00	1,671,000.00
16	Cost of goods sold	(d)	1,053,500.00
17	Gross profit	(e)	(e)
18	Operating expenses	545,000.00	(f)
19	Net income	(f)	382,900.00

	Required:
A.	Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
B.	Prepare Volt Company’s statement of cost of goods manufactured for December.*
C.	Prepare Volt Company’s income statement for December.* * Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Enter all amounts as positive numbers.

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

Letter	Prius Company	Volt Company
a.
b.
c.
d.
e.
B. Prepare Volt Company’s statement of cost of goods manufactured for December. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Enter all amounts as positive numbers. Question not attempted. Score: 0/100 Volt Company Statement of Cost of Goods Manufactured For the Month Ended December 31, 2016 1 2 Direct materials: 3 4 5 6 7 8 9 10 11 Total manufacturing costs 12 13 C. Prepare Volt Company’s income statement for December. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Enter all amounts as positive numbers. Question not attempted. Score: 0/76 Volt Company Income Statement For the Month Ended December 31, 2016 1 2 Cost of goods sold: 3 4 5 6 7 8 9 10

Answer 1

Prius Company			Volt Company
a) Materials inventory, December 1	$281,960		a) Materials inventory, December 1	$179,000
Material Purchased	$712,200		Material Purchased	$341,200
Raw Material Available	$994,160		Raw Material Available	$520,200
Less: Raw Material Used in production	$751,600		Materials inventory, December 31	-$178,000
Materials inventory, December 31	$242,560		Raw Material Used in production	$342,200
			b) Total Manufaturing Cost incurred during Month	$1,032,000
b)Raw Material Used in production	$751,600		Less: Raw Material Used in production	$342,200
Direct Labour	$1,059,200		Fless: actory overhead	$180,400
Factory overhead	$325,800		Direc Labour	$509,400
Total Manufaturing Cost incurred during Month	$2,136,600
c)Total Manufaturing Cost incurred during Month	$2,136,600		c)Total Manufaturing Cost incurred during Month	$1,032,000
WIP, Inventory Dec1	$541,000		WIP, Inventory Dec1	$443,500
Less: WIP, Inventory Dec31	-$452,000		Less: Cost of Goods Manufactured	-$1,025,500
Cost of Goods Manufactured	$2,225,600		WIP, Inventory Dec31	$450,000
d. Cost of Goods Manufactured	$2,225,600		d. Cost of Goods Manufactured	$1,025,500
Finished Goods Inventory Dec1	$478,200		Finished Goods Inventory Dec1	$205,000
Less: Finished Goods Inventory Dec31	-$495,400		Less: Cost of Gooda Sold	$1,053,500
Cost of Gooda Sold	$2,208,400		Finished Goods Inventory Dec31	$177,000
e)Sales	$4,144,000		e)Sales	$1,671,000
Less: Cost of Goods Sold	-$2,208,400		Less: Cost of Goods Sold	-$1,053,500
Gross Profit	$1,935,600		Gross Profit	$617,500
f. Gross proft	$1,935,600		f. Gross proft	$617,500
Operating Expense	-$545,000		Less: Net Income	$382,900
Net Income	$1,390,600		Operating Expense	$234,600

Cost of Goods Manufactured Volts Company
	Materials inventory, December 1	$179,000
Less	Materials inventory, December 31	$178,000
	Materials purchased	$341,200
	Cost of direct materials used in production	$342,200
	Direct labor	$509,400
	Factory overhead	$180,400
	Total manufacturing costs incurred during December	$1,032,000
	Total manufacturing costs	$1,475,500
	Work in process inventory, December 1	$443,500
Less	Work in process inventory, December 31	$450,000
	Cost of goods manufactured	$1,025,500

Income Statement- For Volt Company
Sales	$1,671,000
Less: Cost of Goods Sold	-$1,053,500
Gross Profit	$617,500
Less: Operating Expense	$234,600
Net Income	$382,900