Question

DATA SECTION:
For the Month Ended November 30, 2017
Balance Balance
November 1 November 30
Raw Material Inventory $ 5,600 $ 4,100
Work in Process Inventory 10,200 12,800
Finished Goods Inventory     8,100     6,700

Purchases of Raw Materials $63,000
Direct Manufacturing Labor 15,000
Indirect Manufacturing Labor 32,000
Plant Insurance     8,000
Depreciation Expense - Plant, Building, and Equip. 22,000
Repairs and Maintenance - Plant     7,200
Marketing, Distribution, and Customer-Service Costs 24,000
General and Administrative Costs 19,200
Revenue 258,300
Income Tax Rate 40.00%

TASK: Prepare a cost of goods manufactured schedule and an income statement.

Answer 1

Cost of goods manufactured :

Beginning work in process			10200
Direct material used
Beginning raw material	5600
Purchase of raw material	63000
Raw material available for use	68600
Less: Ending raw material	-4100
Direct material used		64500
Direct Manufacturing Labor		15000
Manufacturing overhead
Indirect Manufacturing Labor	32000
Plant Insurance	8000
Depreciation Expense - Plant, Building, and Equip	22000
Repairs and Maintenance - Plant	7200
Total manufacturing overhead		69200
Total manufacturing cost			148700
Total Cost of work in process			158900
Less: Ending work in process			-12800
Cost of goods manufactured			146100

Income statement :

Revenue		258300
Less: Cost of goods sold
Beginning finished goods	8100
Cost of goods manufactured	146100
Cost of goods available for sale	154200
Less: Ending finished goods	-6700
Cost of goods sold		-147500
Gross profit		110800
Less: Operating expense
Marketing, Distribution, and Customer-Service Costs	24000
General and Administrative Costs	19200
Total operating expense		-43200
Income before tax		67600
Less: Tax @40%		-27040
Net income		40560