Question

P2-39 (similar to) The Smith Corporation has the following account balances (in millions): E (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 Smith Corporation Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2017 (In millions) Direct materials costs: 2$ 15 Beginning inventory, Jan. 1, 2017 315 Purchases of direct materials 330 Cost of direct materials available for use 27 Ending inventory, Dec. 31, 2017 303 Direct materials used 90 Direct manufacturing labor costs Indirect manufacturing costs: 70 Depreciation-plant and equipment Plant supervisory salaries 40 Miscellaneous plant overhead 12 Plant supplies used 35 Plant utilities 60 Indirect manufacturing labor 221 %24 %24

Answer 1

960 74 Smith Corporation Income Statement For the Year Ended December 31, 2017 (in millions) Revenues Cost of goods sold: Beginning finished goods, Jan. 01, 2017 Cost of goods manufactured 622 Cost of goods available for sale 696 Ending finished goods, Dec. 31, 2017 Cost of goods sold Gross margin Marketing, distribution, and customer-service costs Operating income 637 223