Question

Paldyl dpi Styles 11. . Jackson Grills has supplied the following information from its accounting records for the month of August. Direct labour cost $11,500 Purchases of raw materials 20,000 Factory depreciation 7,500 Advertising 10,000 Factory property taxes 6,500 Materials inventory, 8/1 1,250 Materials inventory, 8/31 2,500 Work-in-process inventory, 8/1 Work-in-process inventory, 8/31 1,500 Cost of goods manufactured 45,850 Sales revenue Executive salary cost 25,000 Finished goods inventory, 8/1 5,500 Finished goods inventory, 8/31 4,250 Operating income 67,900 Gross margin Solve for the missing amounts (?).

Answer 1

Amounts Statement of Cost of goods manufactured :- Particulars Direct material used :- Material Inventory as on Beginning, 8/1 Purchases Cost of material available for use Less: Material Inventory on Ending, 2017 Cost of direct material used (A) Direct manufacturing labor (B) Factory overhead:- Factory Depreciation Factory Property taxes Total Factory overhead ('C) Total manufacturing cost incurred (A+B+C) Add: Work in process Inventory, Beginning 8/1 1,250 20,000 21,250 (2,500) 18,750 11,500 7,500 6,500 14,000 44,250 3,100 47,350 Less: Work in process Inventory, Ending 8/31 Cost of goods manufactured (1,500) 45,850 Work in process Inventory, 8/1 3,100 Statement of Cost of goods sold :- Particulars Cost of goods manufactured Add finished goods inventory, 8/1 Cost of goods available for sale Less finished goods inventory, 8/31 Cost of goods sold Amounts 45,850 5,500 51,350 (4,250) 47,100 Amounts 150,000 (47,100) 102,900 Income Statement :- Particulars Sales Revenue Less: Cost of goods sold Gross margin Less: Operating expenses Executive salary cost Advertising Total Operating expenses Operating Income 25,000 10,000 35,000 67,900 Gross margin is = Operating income + Operating expenses Sales Revenue = Gross margin + Cost of goods sold