Question

StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Raw materials Work in process Finished goods Begiming Inventory $28, 400 21, 700 78,300 Ending Inventory $25, 600 45, 600 69, 600 Additional information for the month of March follows: Raw materials purchases Indirect materials used Direct labor Manufacturing overhead applied Selling, general, and administrative expenses Sales revenue $ 41, 400 1, 700 63, 100 36, 800 23, 400 237, 100 Required: 1. Based on the above information, prepare a cost of goods manufactured report. 2. Based on the above information, prepare an income statement for the month of March.

Answer 1

STORSMART COMPANY Cost of Goods Manufactured Report For the Month of March Beginning Raw Materials Inventory $ 28,400 Plus: Raw Material Purchases $ 41,400 Less: Indirect Material Used $ 1,700 Less: Ending Raw Materials Inventory $ 25,600 Direct Materials Used in Production $ 42,500 Direct labor $ 63,100 Manufacturing Overhead S 36.800 Total Current Manufacturing Costs $ 142,400 Plus: Beginning Work in Process Inventory | $ 21,700 Total Work in Process $ 164,100 Less: Ending Work in Process Inventory $ 45,600 Cost of Goods Manufactured $ 118,500

$ 237,100 STORSMART COMPANY Income Statement For the Month of March Sales Revenue Less: cost of goods Sold Beginning Finished Goods Inventory $ 78,300 Plus: Cost of Goods Manufactured S 118,500 Less: Ending Finished Goods Inventory S 69.600 Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Net Income (Loss) from Operations $ 127,200 $ 109,900 $ 23,400 $ 86,500