Question

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December:

	On Company		Off Company
Materials inventory, December 1	$85,200		$114,170
Materials inventory, December 31	(a)		129,010
Materials purchased	216,410		256,880
Cost of direct materials used in production	228,340		(a)
Direct labor	321,200		(b)
Factory overhead	99,680		127,870
Total manufacturing costs incurred in December	(b)		738,680
Total manufacturing costs	812,810		812,800
Work in process inventory, December 1	163,580		275,150
Work in process inventory, December 31	138,020		(c)
Cost of goods manufactured	(c)		731,830
Finished goods inventory, December 1	143,990		127,870
Finished goods inventory, December 31	150,800		(d)
Sales	1,255,850		1,141,700
Cost of goods sold	(d)		738,680
Gross profit	(e)		(e)
Operating expenses	163,580		(f)
Net income	(f)		253,460

Required:

1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

Letter	On Company	Off Company
a.	$	$
b.	$	$
c.	$	$
d.	$	$
e.	$	$
f.	$	$

2. Prepare On Company's statement of cost of goods manufactured for December.

On Company
Statement of Cost of Goods Manufactured
For the Month Ended December 31
			$
Direct materials:
	$
	$
		$
Total manufacturing costs incurred during December
Total manufacturing costs			$
			$

3. Prepare On Company's income statement for December.

On Company
Income Statement
For the Month Ended December 31
		$
Cost of goods sold:
	$
	$
		$
		$

Thank you in advance!

Answer 1

2)	Cost of goods manufactured (On company)
	Work in process inventory,december 1							163,580
	Raw materials inventory,December 1					85,200
	materials purchased					216,410
	cost of raw materials available for use					301,610
	Raw materials inventory,December 31					73,270
	Cost of direct materials used in production						228,340
	Direct labor						321,200
	Factory overhead						99,680
	Total manufacturing cost incurred in December							649,220
	Total manufacturing cost							812,800
	work in process inventory ,December 31							138,020
	cost of goods manufactured							674,780
	(there is $10 difference in total manufacturing cost given in question for On
	company , so please check your figures whether you typed it correctly)
3)	Cost of goods sold
	Finished goods inventory,December 1						143,990
	cost of goods manufactured						674,780
	cost of goods available for sale						818,770
	Finished goods inventory,December 31						150,800
	Cost of goods sold						667,970
	income statement
	sales						1,255,850
	less cost of goods sold						667,970
	Gross profit						587,880
	less operating expense						163,580
	net income						424,300
	Cost of goods manufactured (Off company)
	Work in process inventory,december 1							275,150
	Raw materials inventory,December 1					114,170
	materials purchased					256,880
	cost of raw materials available for use					371,050
	Raw materials inventory,December 31					129,010
	Cost of direct materials used in production						242,040
	Direct labor						368,770
	Factory overhead						127,870
	Total manufacturing cost incurred in December							738,680
	Total manufacturing cost							1,013,830
	work in process inventory ,December 31							282,000
	cost of goods manufactured							731,830
	(there is $10 difference in total manufacturing cost given in question for On
	company , so please check your figures whether you typed it correctly)
	Cost of goods sold
	Finished goods inventory,December 1						127,870
	cost of goods manufactured						731,830
	cost of goods available for sale						859,700
	Finished goods inventory,December 31						121,020
	Cost of goods sold						738,680
	income statement
	sales						1,141,700
	less cost of goods sold						738,680
	Gross profit						403,020
	less operating expense						149,560
	net income						253,460
	(I have given you the method of doing it , but there are certain errors in your question,
	which need to be rectified to get correct answer, please make those changes to
	get absolute correct answer.-Even your off company figures are not matching )
1)	letter		On		Off
			Company		Company
	a.		73,270		242,040
	b.		649,220		368,770
	c.		674,780		282,000
	d.		667,970		121,020
	e.		587,880		403,020
	f.		424,300		149,560