Question

StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March:

	Beginning Inventory			Ending Inventory
Raw materials	$	28,600		$	26,000
Work in process		22,500			45,300
Finished goods		78,700			69,100

Additional information for the month of March follows:

StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March:

Raw materials purchases	$	41,200
Indirect materials used		1,200
Direct labor		63,000
Manufacturing overhead applied		35,800
Selling, general, and administrative expenses		24,900
Sales revenue		236,600

Required:
1. Based on the above information, prepare a cost of goods manufactured report.

2. Based on the above information, prepare an income statement for the month of March.

StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March:

Answer 1

	Cost of Goods Manufactured Report
	For the Month of March
Beginning Raw Materials Inventory	28600
Plus: Raw Material Purchases	41200
Less: Indirect Material Used	1200
Less: Ending Raw Materials Inventory	26000
Direct Materials Used in Production	42600
Direct Labor	63000
Manufacturing Overhead	35800
Total Current Manufacturing Costs	141400
Plus: Beginning Work in Process Inventory	22500
Total Work in Process	163900
Less: Ending Work in Process Inventory	45300
Cost of Goods Manufactured	118600
	Income Statement
	For the Month of March
Sales Revenue		236600
Less: Cost of Goods Sold
Beginning Finished Goods Inventory	78700
Cost of Goods Manufactured	118600
Cost of Goods Available for Sale	197300
Ending Finished Goods Inventory	69100
Cost of Goods Sold		128200
Gross Profit		108400
Selling, General, and Administrative Expenses		24900
Net Income from Operations		83500