Question

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December 2016: 1 Prius Company Volt Company 2 Materials inventory, December 1 $281,680.00 $179,000.00 3 Materials inventory, December 31 (a) 175,500.00 4 Materials purchased 714,000.00 341,500.00 5 Cost of direct materials used in production 752,400.00 (a) 6 Direct labor 1,058,800.00 (b) 7 Factory overhead 325,400.00 178,600.00 8 Total manufacturing costs incurred during December (b) 1,038,000.00 9 Total manufacturing costs 2,677,200.00 1,481,500.00 10 Work in process inventory, December 1 540,600.00 443,500.00 11 Work in process inventory, December 31 453,200.00 (c) 12 Cost of goods manufactured (c) 1,025,500.00 13 Finished goods inventory, December 1 477,800.00 201,500.00 14 Finished goods inventory, December 31 496,400.00 (d) 15 Sales 4,140,000.00 1,678,000.00 16 Cost of goods sold (d) 1,042,000.00 17 Gross profit (e) (e) 18 Operating expenses 543,000.00 (f) 19 Net income (f) 380,500.00 Required: A. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers. B. Prepare Volt Company’s statement of cost of goods manufactured for December.* C. Prepare Volt Company’s income statement for December.* * Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Enter all amounts as positive numbers. Amount Descriptions Cost of direct materials used in production Cost of finished goods available for sale Cost of goods manufactured Cost of goods sold Cost of materials available for use Direct Labor Factory overhead Finished goods inventory, December 1, 2016 Finished goods inventory, December 31, 2016 Gross profit Materials inventory, December 1, 2016 Materials inventory, December 31, 2016 Net income Operating expenses Purchases Sales Total manufacturing costs incurred during December Work in process inventory, December 1, 2016 Work in process inventory, December 31, 2016 A. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers. Letter Prius Company Volt Company a. $243,280 $345,000 b. $2,136,600 $514,400 c. $2,224,000 $456,000 d. $2,205,400 $185,000 e. $1,391,600 $636,000 f. $1,391,600 $255,500 Points: 11 / 12 Check My Work A. For Prius Company: (Note: Use similar relationships to find the missing amounts for the Volt Company items a through f.) a. The beginning and ending materials inventory amounts and the amount of materials purchased are used in the calculation of the cost of direct materials used in production. b. The three costs of a manufactured product are added to determine total manufacturing costs incurred during December. c. The beginning and ending work in process amounts and the manufacturing costs incurred during December are used in the calculation of the cost of goods manufactured. d. The beginning and ending finished goods amounts and the cost of goods manufactured are used in the calculation of the cost of goods sold. e. Sales and one expense amount are used to determine gross profit. f. Sales and expense amounts are used to determine net income.

Answer 1