Question

The following information is available for Robstown Corporation for 20Y8: Inventories January 1 December 31 Materials $78,900 $93,850 Work in process 109,800 95,500 Finished goods 113,750 109,000 December 31 Advertising expense $ 68,200 Depreciation expense-office equipment 21,000 Depreciation expense-factory equipment 14,780 Direct labor 186,800 Heat, light, and power-factory 5,650 Indirect labor 24,700 Materials purchased 123,600 Office salaries expense 74,900 Property taxes-factory 4,000 Property taxes-office building 13,800 Rent expense-factory 6,550 Sales 862,500 Sales salaries expense 138,500 Supplies-factory 2,750 Miscellaneous costs-factory 5,120 Required: a. Prepare the 20Y8 statement of cost of goods manufactured. For those boxes in which you must enter subtracted or negative numbers use a minus sign.* b. Prepare the 20Y8 income statement. Enter all amounts as positive numbers.* *Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Answer 1

Robstown Corporation
Cost of Goods manufactured
For the year ended December 31, 20Y8
Labels	Amount Descriptions	Amount Descriptions
Direct materials
Direct materials inventory, January 1	$     78,900.00
Direct materials purchases	$ 1,23,600.00
Cost of direct materials available for use	$ 2,02,500.00
Direct materials inventory, December 31	$     93,850.00
Cost of direct materials placed in production		$ 1,08,650.00
Direct labor		$ 1,86,800.00
Factory overhead
Indirect Labor	$     24,700.00
Depreciation Expenses-Manufacturing Equipment	$     14,780.00
Supplies factory	$        2,750.00
Heat light power- factory	$        5,650.00
Rent Expenses-Factory	$        6,550.00
Miscellaneous Cost Factory	$        5,120.00
Property taxes-factory	$        4,000.00
Total Factory Overheads		$     63,550.00
Total Manufacturing Cost		$ 3,59,000.00
Add: Work in process inventory, January 1		$ 1,09,800.00
Total work in process during the period		$ 4,68,800.00
Less: Work in process inventory, December 31		$     95,500.00
Costs of good manufactured		$ 3,73,300.00

Robstown Corporation
Income Statement
For the year ended December 31, 20Y8
Sales		$    8,62,500.00
Cost of Goods Sold
Beginning Finished Goods Inventory	$       1,13,750.00
Cost of goods Manufactured	$       3,73,300.00
Goods Available for sale	$      4,87,050.00
Less: Ending Finished Goods Inventory	$       1,09,000.00
Cost of Goods Sold		$    3,78,050.00
Gross Profit from Sales		$    4,84,450.00
Operating Expenses
Administrative Expenses
Depreciation expense- Office Equipment	$           21,000.00
Office salaries expense	$           74,900.00
Property taxes-office building	$           13,800.00	$    1,09,700.00
Selling Expenses
Advertisement Expenses	$           68,200.00
Sales salaries expenses	$       1,38,500.00	$    2,06,700.00
Total Operating expenses		$    3,16,400.00
Net Income		$    1,68,050.00