Question

Required information Use the following information for the Exercises below. The following selected account balances are provided for Delray Mfg. $ Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases Direct labor Factory supplies used (indirect materials) Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, ending Work in process inventory, ending Finished goods inventory, ending 1,126,000 37,000 51,500 69,000 162,400 220,000 15, 200 44,000 5,250 56,000 104,000 140,000 49,800 39,200 69,700

Answer 1

Delray Mfg. 37000 162400 199400 49800 149600 220000 Schedule of Cost of Goods Manufactured For Year Ended December 31, Year 1 Direct materials Raw materials inventory, Beginning Add: Raw materials purchases Raw materials available for use Less: Raw materials inventory, Ending Direct materials used Direct labor Factory overhead: Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factory building Total factory overhead costs Total manufacturing costs Add: Work in process inventory, Beginning Total cost of work in process Less: Work in process inventory, Ending Cost of goods manufactured 15200 44000 5250 56000 120450 490050 51500 541550 39200 502350 1126000 Income Statement For Year Ended December 31, Year 1 Sales Cost of goods sold: Finished goods inventory, Beginning Cost of goods manufactured Cost of goods available for sale Less: Finished goods inventory, Ending Cost of goods sold Gross profit Operating expenses: Advertising expense General and administrative expenses Total operating expenses Operating income 69000 502350 571350 69700 501650 624350 104000 140000 244000 380350