Question

Manufacturing Income Statement, Statement of Cost of Goods Manufactured

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

	On Company		Off Company
Materials inventory, December 1	$81,310		$108,140
Materials inventory, December 31	(a)		122,200
Materials purchased	206,530		(a)
Cost of direct materials used in production	217,910		(b)
Direct labor	306,540		243,320
Factory overhead	95,130		121,120
Total manufacturing costs incurred in December	(b)		699,670
Total manufacturing costs	775,700		960,290
Work in process inventory, December 1	156,120		260,620
Work in process inventory, December 31	131,720		(c)
Cost of goods manufactured	(c)		693,180
Finished goods inventory, December 1	137,410		121,120
Finished goods inventory, December 31	143,920		(d)
Sales	1,198,510		1,081,400
Cost of goods sold	(d)		699,670
Gross profit	(e)		(e)
Operating expenses	156,120		(f)
Net income	(f)		240,070

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.	$	$

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
Work in process inventory, December 1			$
Direct materials:
Materials inventory, December 1	$
Purchases
Cost of materials available for use	$
Less materials inventory, December 31
Cost of direct materials used in production		$
Direct labor
Factory overhead
Total manufacturing costs incurred during December
Total manufacturing costs			$
Less work in process inventory, December 31
Cost of goods manufactured			$

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

On Company
Income Statement
For the Month Ended December 31
Sales		$
Cost of goods sold:
Finished goods inventory, December 1	$
Cost of goods manufactured
Cost of finished goods available for sale	$
Less finished goods inventory, December 31
Cost of goods sold
Gross profit		$
Operating expenses
Net income		$

Answer 1

Req 1
		ON COMPANY		OFF COMPANY
A		69930		349290
B		619580		335230
C		643980		267110
D		637470		114630
E		561040		381730
F		404920		141660
Req 2:
ON COMPANY SCHEDULE OF COST OF GOODS MANUFACTURED
Wprk in process Inv beg.					156120
Direct material:
Material inventory Beg.				81310
Add: Purchases				206530
Less: Ending inventory				69930
Cost of material used in production					217910
Direct labour					306540
Production OH					95130
Total manufacturing cost incurred					619580
Total manufacturing cost					775700
Less: Ending WIP					131720
Cost of goods manufactured					643980
Req 3:
ON COMPANY INCOME STATEMENT
sales					1198510
Cost of goods sold
Fininshed goods inve. Beg.				137410
Cost of goods manufactured				643980
Cost of goods available ffor sale				781390
Less: Finished goods inv. Ending				143920
Cost of goods sold					637470
Gross profit					561040
Less: Operating expense					156120
Net income					404920