Question

Yolo Windows, a manufacturer of windows for commercial buildings, reports the following account information for last year (all costs are in thousands of dollars). $ 83 113 1,660 Information on January 1 (Beginning): Direct materials inventory Work-in-process inventory Finished goods inventory Information for the year: Administrative costs Direct labor Direct materials purchases Factory and machine depreciation Factory supervision Factory utilities Indirect factory labor Indirect materials and supplies Marketing costs Property taxes on factory Sales revenue Information on December 31 (Ending): Direct materials inventory Work-in-process inventory Finished goods inventory $ 3,660 12,700 8,250 11,690 745 956 2,850 690 1,480 276 45,900 $ 98 146 1,430 Required: 1. Prepare a cost of goods sold statement. 2. Prepare an income statement.

Answer 1

Ans;

Cost of Goods Sold
Particulars	Amount( In Thousand)	Amount( In Thousand)
Direct Material Used
Beginning Balance	83
Add: Direct Material Purchased	8,250
Total Direct materil Available	8,333
Less:Ending Balance	98
Total Direct Material Used		8,235
Add: Direct labor		12,700
Add:Manufacturing Overhead
Factory And Machine depreciation	11,690
Factory Supervision	745
Factory utilities	956
Indirect factory labor	2,850
Indirect materials and supplies	690
Property taxes on factory	276
Total manufacturing overhead		17,207
Total Manufacturing costs		38,142
Add;Beginning work in process Inventory		113
		38,255
Less:Ending work in process Inventory		146
Cost of goods Manufactured		38,109
Add:Beginning finished goods inventory		1660
Total goods available for sale		39,769
Less:Ending Finished goods inventory		1430
Cost of goods sold		38,339

Income Statement
For the Year ended December 31
Particulars		Amount(In thousand)
Sales Revenue		45,900
Cost of goods sold		-38339
Gross Profit		7,561
Operating Expenses
Administrative costs	3,660
Marketing costs	1480
Total Operating expenses		5,140
Income from Operations		2,421