Question

Given Information: As of December 31, 20##
				Beginning	Ending
	Finished Goods Inventory			99,500	122,500		Sales		1,750,000
	Work In Process Inventory			22,000	23,500		Property Taxes (Factory)		24,000
							Factory Utilities		32,000
	Direct Material Used				155,000		Amortization (80 % Factory)		45,000
	Direct Manufacturing Labour				400,500		Selling and Admin Expense		120,250
	InDirect Manufacturing Labour				75,000		Admin Salaries		182,750

Prepare a Cost of Goods Manufactured Statement Along with an income Statement.

Answer 1

Cost of goods manufactured statement

Direct material used		155000
Direct labor		400500
Manufacturing overhead
Indirect labor	75000
Property taxes	24000
Factory utilities	32000
Amortization (45000*80%)	36000
Total manufacturing overhead		167000
Total manufacturing cost		722500
Beginning work in process		22000
Total Cost of work in process		744500
Less: Ending work in process		-23500
Cost of goods manufactured		721000

Income statement

Sales		1750000
Cost of goods sold
Beginning finished goods	99500
Cost of goods manufactured	721000
Cost of goods available for sale	820500
Less: Ending finished goods	-122500
Cost of goods sold		-698000
Gross profit		1052000
Less: Selling and administrative expense
Amortization	9000
Selling and Admin Expense	120250
Admin Salaries	182750
Total selling and administrative expense		312000
Net operating income		740000