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 $280,280.00 $179,000.00 3 Materials inventory, December 31 (a) 177,500.00 4 Materials purchased 712,000.00 340,000.00 5 Cost of direct materials used in production 752,000.00 (a) 6 Direct labor 1,059,600.00 (b) 7 Factory overhead 325,200.00 179,600.00 8 Total manufacturing costs incurred during December (b) 1,035,000.00 9 Total manufacturing costs 2,676,800.00 1,479,500.00 10 Work in process inventory, December 1 540,000.00 444,500.00 11 Work in process inventory, December 31 451,400.00 (c) 12 Cost of goods manufactured (c) 1,027,500.00 13 Finished goods inventory, December 1 478,400.00 201,000.00 14 Finished goods inventory, December 31 495,200.00 (d) 15 Sales 4,143,000.00 1,676,500.00 16 Cost of goods sold (d) 1,053,500.00 17 Gross profit (e) (e) 18 Operating expenses 540,000.00 (f) 19 Net income (f) 383,000.00 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. Amount Descriptions Cost of direct materials used in production Cost of finished goods available for sale Cost of goods manufactured Cost of goods sold Cost of materials available for use Direct Labor Factory overhead Finished goods inventory, December 1, 2016 Finished goods inventory, December 31, 2016 Gross profit Materials inventory, December 1, 2016 Materials inventory, December 31, 2016 Net income Operating expenses Purchases Sales Total manufacturing costs incurred during December Work in process inventory, December 1, 2016 Work in process inventory, December 31, 2016 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. f. 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. 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. 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

A.Missing figures required are in Bold.

THEY ARE THE BALACING FIGURES OF THE WOWORKING!

Direct material

Particular	Prius	Volt	Particular	Prius	Volt
Opening	280280	179000	Production	752000	341500(a)
Purchase	712000	340000
			Closing	240280(a)	177500
	992280	519000		992280	519000

Manufacturing costs

	Prius	Volt
Direct Material	752000	341500
Direct Labour	1059600	513900(b)
Factory Overhead	325200	179600
	2136800(b)	1035000

Work in process

Particular	Prius	Volt	Particular	Prius	Volt
Opening	540000	444500	cost of goods mfr	2225400(c)	1027500
Cost incurred	2136800	1035000
			Closing	451400	452000(c)
	2676800	1479500		2676800	1479500

Finished Goods

Particular	Prius	Volt	Particular	Prius	Volt
Opening	478400	201000	Cost of goods sold	2208600(d)	1053500
Cost of goods mfr	2225400	1027500
			Closing	495200	175000(d)
	2703800	1228500		2703800	1228500

Particular	Prius	Volt
Sales	4143000	1676500
Less: Cost of Goods sold	2208600	1053500
Gross Profit	1934400(e)	623000(e)
Less: operating exp	540000	240000(f)
Net income	1394400(f)	383000

B.

Cost of goods manufactured of Volt company

Opening material:$179000

Purchases:$340000

Cost of material available for use:$ 519000

Less: Closing Material:$177500

DirectMaterial used in production: $341500

Direct labour: $513900

Factory Overhead: $179600

Total manufacturing costs incurred: $1035000

Add: Opening WIP: $444500

Less: Closing WIP: $452000

Cost of goods manufactured: $1027500

C.Income statement of volt company

Sales:$1676500

Less:Openingstock:$ 201000

Less:Cost of Finished goods available for sales:$1027500

Add: Closing Stock:$ 175000

Costof goods sold: $1053500

Gross Profit:$623000

Less: operating exp:$24000

Net income:$383000

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