Question

PR 15-5B Statement of cost of goods manufactured and income statement for a manufacturing company Obj. 4 The following information is available for Shanika Company for 2016: SHOW ME LTE TEMPLATE Inventories Materials Work in process Finished goods January 1 $ 77,350 109,200 113,750 December 31 $ 95,550 96,200 100,100 $ 68,250 22,750 14,560 Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment Direct labor Heat, light, and power-factory Indirect labor Materials purchased Office salaries expense Property taxes-factory Property taxes-headquarters building Rent expense-factory Sales Sales salaries expense Supplies-actory Miscellaneous costs-factory 186,550 5,850 23,660 123,500 77,350 4,095 13,650 6,825 864,500 136,500 3,250 4,420

Answer 1

For reference

$ 1,05,300.00 $ 1,86,550.00 SCHEDULE OF GOODS MANUFACTURED Direct Materials Beginning Raw Material Inventory $ 77,350.00 Add: Cost of raw material purchased $ 1,23,500.00 Total raw material available $ 2,00,850.00 Less: Ending Raw material Inventory | $ 95,550.00 Total Raw material used Direct Labor Manufacturing Overheads Indirect labor $ 23,660.00 Depreciation-factory Equipment $ 14,560.00 Heat, light, power - factory $ 5,850.00 Property taxes - factory building $ 4,095.00 Rent expenses-factory $ 6,825.00 Supplies - factory $ 3,250.00 Miscellaneous cost -factory $ 4,420.00 Total Overhead Costs Total manufacturing costs Add: Beginning Work in progress $ 62,660.00 $ 3,54,510.00 $ 1,09,220.00 $ 4,63,730.00 $ 96,200.00 $3,67,530.00 Less: Closing work in progress Cost of goods manufactured $ 8,64,500.00 $ 3,81,180.00 INCOME STATEMENT Sales Cost of goods sold Beginning finished goods inventory $ 1,13,750.00 Add: Cost of goods manufactured $ 3,67,530.00 | Total goods available for sale $ 4,81,280.00 Less: Ending finished goods inventory | $ 1,00,100.00 Cost of goods sold Selling and Admin Expenses Advertising $ 68,250.00 Depreciation on office equipment | $ 22,750.00 Office Salaries $ 77,350.00 Property taxes - headquarters $ 13,650.00 Sales salaries expense $ 1,36,500.00 Selling and Admin Expenses Operating Profits $ 3,18,500.00 $ 1,64,820.00

1. Direct Material cost is $105,300

2. Direct Labor cost is $186.550

3. False

4. True

5. True

6. $62,660

7. True

8. $367,530

9. $381,180

10. $318,500

Note: I have answered all the questions without explanation for every part separately as the schedule attached for reference has explanation for every answer.