Keeton Corporation has the following data: Selling and administrative expenses $79,000 Finished goods inventory, December 1...

Keeton Corporation has the following data:

Selling and administrative expenses	$79,000
Finished goods inventory, December 1	21,000
Finished goods inventory, December 31	30,000
Materials inventory, December 1	6,000
Materials inventory, December 31	8,000
Direct labor	25,000
Purchases	92,000
Factory overhead	37,000
Work in process inventory, December 1	22,000
Work in process inventory, December 31	23,500
Sales	257,000

a. Prepare a schedule of cost of goods manufactured.

b. Prepare an income statement for the month ended December 31

Solutions

Expert Solution

Keeton Corporation Schedule of cost of goods manufactured
Direct materials
Materials inventory, December 1	$6,000
Add : Purchases	$92,000
Raw materials available for use	$98,000
Less: Materials inventory, December 31	($8,000)
Raw materials used in production		$90,000
Direct labor		$25,000
Factory overhead		$37,000
Total Manufacturing costs		$152,000
Add: Work in process inventory, December 1		$22,000
		$174,000
Less : Work in process inventory, December 31		($23,500)
Cost of goods manufactured		$150,500

Keeton Corporation Income Statement For the month Ended December 31
Sales		$257,000
Less: Cost of goods sold
Finished goods inventory, December 1	$21,000
Add: Cost of goods manufactured	$150,500
Less: Finished goods inventory, December 31	($30,000)
Cost of goods sold		($141,500)
Gross profit		$115,500
Less: Selling and administrative expenses		($79,000)
Net profit		$36,500

ekkarill92 answered 1 year ago

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