Question

Question 2: Good Vibrations, Inc., produces videotapes of musical performances. newly hired executive of the company has asked you to sort through the prepare a statement of the company's cost of goods manufacture following data from records prepared by Good Vibrations, Inc.- December 31: you to sort through the records and "Pany's cost of goods manufactured. You find the Good Vibrations, Inc., for the year ended Items Beginning Direct Materials Inventor, January 1 Ending Direct Materials Inventory, December 31 Beginning Work In Process Inventory, January 1 Ending Work In Process Inventory, December 31 Materials Purchases Direct Labor Indirect Labor Factory Utilities Expense Factory Supplies Expense Depreciation Expense - Factory Building Depreciation Expense - Factory Equipment Other Manufacturing Overhead Finished Goods Inventory On January 1 Ending Finished Goods Inventory On December 31 Sales Sales Returns And Allowances Sales Discounts Selling Expenses Administrative Expenses Insurance Expense Amount $ 6,000 10,500 10,000 9,500 50,000 40,000 15,000 7,000 5,000 14.000 10,500 5,000 400.000 5,000 20,000 $50,000 75,000 45,000 Prepare a statement of cost of goods manufactured and Income statement for Good Vibrations, Inc., for the year ended December 31.

Answer 1

Good Vibrations Inc. Statement of Cost of Goods Manufactured For the year ended December 31
Beginning work in process inventory		$ 10,000
Direct materials used
Beginning inventory	$ 6,000
Add: Materials Purchases	50,000
Ending inventory	(10,500)	45,500
Direct labor		40,000
Manufacturing overhead
Indirect labor	15,000
Factory utilities expense	7,000
Factory supplies expense	5,000
Depreciation Expense : Factory Building	14,000
Depreciation Expense: Factory Equipment	10,500
Other manufacturing overhead	25,000	76,500
Total Manufacturing Costs		162,000
Total Cost of Work in Process Inventory		172,000
Ending Work in Process Inventory		(9,500)
Cost of Goods Manufactured		$ 162,500

Good Vibrations Inc. Income Statement For the year ended December 31
Sales	$ 400,000
Sales Discounts	(20,000)
Sales Returns and Allowances	( 5,000 )
Net Sales		$ 375,000
Cost of Goods Sold		177,500
Operating Expenses
Selling Expense	50,000
Administrative Expense	75,000
Insurance Expense	45,000
Total Operating Expenses		170,000
Net Operating Income		$ 7,500