Question

Os 3. ABC Company produces Job Orders. In December, only Job Order 205 was produced. Inventory transactions are as follows: (TL) BEGINNING ENDING 150 RAW MATERIALS INVENTORY 10.000 20,000 01 Direct Raw Materials 6,000 12,000 02 Indirect Materials 4,000 8,000 | 151 WORK IN PROCESS INVENTORY 20.000 16,000 con 152 FINISHED GOODS INVENTORY 40,000 30,000 Transactions for the production of Job Order 205: a) Purchased 120.000 TL direct raw materials and 16.000 TL indirect materials.' b) Incurred 60,000 TL direct labor cost and 12,000 TL indirect labor cost. c) Manufacturing costs are: Energy 18.000 TL Maintenance and repair 6.000 TL Depreciation 40.000 TL d) Job Order 205 is finished and sold for 400.000 TL e) Marketing, sales, and distribution expenses are 30.000 TL and general administrative expenses are 20.000 TL. Required: a) Prepare Cost of Goods Sold Statement. (15 points) b) Prepare Income Statement. (5 points)

Answer 1

Page Cost of Goods Sold Statement Particulars I Amount Amount" Opening Raw Material 10,000 - Raw Material Purchased 120.000 Go Closing haw Materiale (2o,000 410,000 Material consumed 110,000 (t) Direct Labour __6000e Prime Cost 4170,000 (+ factory Overheads : Indirect Mareniali, Opening Indirect Mat: 4,000 (t) Indirect Mat purchased: 16,000 elllesing Indirect Mat : (8,000) 12,000 Indirect Labour 112,000 Energy 18,000 e Rohnin Maintenence & Repair 1 6ooo Depreciation 40,000 88,000 I Gross works Cost 250.000 + Obening klookin-progress 20,000 A Closing work-in-progue (16,ool. horks Cost 262,000 1 Opening finished goods Saventou | 40,000 closing finished goods Inventory (30,000) Cost of production 2072000 - Mat > Materials

classmate Date Page Annount Amount: T (+) 20,000 1292,000 (t) Pauticulaus Administrative Expenses Cost of Goods sold selling of distribution Coot of Sales ix Xt Boooo o Expenses 3224000 S Statement I - Income Particulars Sales Value Cost of Amount Amount 400,000 (322,000] E e Sales l ulared in the I statement above) Profit / LOAA | 78,000