Question

P2-39 (similar to) The Smith Corporation has the following account balances (in millions): Click the icon to view the account balances.) Requirement Prepare an income statement and a supporting schedule of cost of goods manufactured for the year ended December 31, 2017 Ending inventory, Dec. 31, 2017 Direct materials used 303 Direct manufacturing labor costs Indirect manufacturing costs: Depreciation-plant and equipment Plant supervisory salaries Miscellaneous plant overhead Plant supplies used Plant utilities Indirect manufacturing labor Total indirect manufacturing costs Manufacturing costs incurred during 2017 Beginning work-in-process inventory, Jan 1, 2017 Total manufacturing costs to account for Ending work-in-process inventory, Dec 31, 2017 Cost of goods manufactured

Answer 1

Statement of Cost of Goods Manufactured
Direct materials inventory, January 1, 2017	15
Purchase of direct materials	315
Direct materials available	$330
Direct materials inventory, December 31, 2017	-27
Direct Materials used	$303
Direct manufacturing labor	90
Manufacturing overhead:
Depreciation - plant and equipment	70
Plant supervisory salaries	4
Miscellaneous plant overhead	40
Plant supplies used	12
Plant utilities	35
Indirect manufacturing labor	60
Total Indirect Manufacturing cost	221
Manufacturing costs incurred during 2017	$614
Beginning work in process inventory, January 1, 2017	12
Total manufacturing costs to account for	$626
Ending work in process inventory, December 31, 2017	-4
Cost of goods manufactured	$622

Income Statement
Revenues		960
Cost of goods sold:
Finished goods inventory, January 1, 2017	74
Cost of goods manufactured	622
Cost of goods available for sale	696
Finished goods inventory, December 31, 2017	-59
Cost of goods sold		-637
Gross Profit		$323
Marketing, distribution, and customer-service costs		-255
Operating Income		$68

Kindly comment if you need further assistance. Thanks‼!

Kindly comment if you need further assistance. Thanks‼!