Question

Prepare the financial statements from the information that has been provided.

Answer 1

Smith Company
Schedule Cost of Goods Manufactures
Year Ended December 31, 2017 (in thousands)
Direct Materials:
Beginning Inventory, Jan 1, 2017	$23,000
Purchase Cost of Direct Materials	$78,000
Cost of Direct Materials Available for Use	$101,000
Ending Inventory, Dec 31, 2017	-$29,000
Direct Materials Used		$72,000
Direct Manufacturing Labor		$21,000
Indirect Manufacturing Costs:
Indirect Manufacturing Labor	$13,000
Plant Insurance	$8,000
Depreciation - Plant, building and equipment	$16,000
Repais and Maintenance - Plant	$5,000
Total Indirect Manufacturing Costs		$42,000
Manufacturing costs incurred during 2017		$135,000
Beginning WIP Jan 1 2017		$27,000
Total Manufacturing Costs to account for		$162,000
Ending WIP, Dec 31, 2017		-$20,000
Cost of Goods Manufactured		$142,000

 

Smith Company
Income Statement
Year Ended December 31, 2017 (in thousand)
Revenues		265000
Cost of Goods Sold:
Beginning Finished Goods, Jan 1, 2017	10000
Cost of Goods Manufactured	142000
Cost of Goods Available for Sale	152000
Ending Finished Goods, Dec 31, 2017	-22000
Cost of Goods Sold		-130000
Gross Margin		135000
Operating Costs:
Marketng, Distribution and Customer-Service Costs	90000
General and Administrative Costs	32000
Total Operating Costs		-122000
Operating Income (Loss)		13000

Cost of Goods Manufactured: $142,000

Income Statement: $13,000