Question

End of 2017 Beginning of 2017 28,000 24,000 16,000 Benesch Company Direct materials inventory Work-in-process inventory Finished-goods inventory Purchases of direct materials Direct manufacturing labor Indirect manufacturing labor Plant insurance Depreciation-plant, building, and equipment Repairs and maintenance-plant Marketing, distribution, and customer service costs General and administrative costs 29,000 21,000 20,000 79,000 22,000 14,000 8,000 15,000 5,000 98,000 23,000

Answer 1

1.

Benesch Company
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 2017 (in thousands)
Direct materials:
Beginning inventory, Jan. 1, 2017	28000
Purchases of direct materials	79000
Cost of direct materials available for use	107000
Ending inventory, Dec. 31, 2017	29000
Direct materials used		78000
Direct manufacturing labor		22000
Indirect manufacturing costs:
Indirect manufacturing labor	14000
Plant insurance	8000
Depreciation-plant, building, and equipment	15000
Repairs and maintenance-plant	5000
Total indirect manufacturing costs		42000
Manufacturing costs incurred during 2017		142000
Work in process inventory, Jan. 1, 2017		24000
Total manufacturing costs to account for		166000
Work in process inventory, Dec. 31, 2017		21000
Cost of goods manufactured		145000

2.

Benesch Company
Income Statement
For the Year Ended December 31, 2017 (in thousands)
Revenues		310000
Cost of goods sold:
Finished goods inventory, Jan. 1, 2017	16000
Cost of goods manufactured	145000
Cost of goods available for sale	161000
Finished goods inventory, Dec. 31, 2017	20000
Cost of goods sold		141000
Gross profit		169000
Operating costs:
Marketing, distribution, and customer-service costs	98000
General and administrative costs	23000
Total operating costs		121000
Operating income (loss)		48000