In: Accounting
Keeton Corporation has the following data:
a. Prepare a schedule of cost of goods manufactured. b. Prepare an income statement for the month ended December 31 |
Keeton Corporation Schedule of cost of goods manufactured |
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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 |
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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 |