Question

Koufax Materials Corporation produces plastic products for home appliances and electronics. the financial department has produced the following information for the year ended December 31.

Saved Problem 2-72 (Algo) Reconstruct Financial Statements (LO 2-1, 2, 6) Koufax Materials Corporation produces plastic products for home appliances and electronics. The financial department has produc the following information for the year ended December 31. Administrative salaries Depreciation on the administrative building Depreciation on the manufacturing plant Direct labor Direct materials inventory, January 1 Direct materials inventory, December 31 Direct materials purchased during the year Distribution costs Finished goods inventory, January 1 Pinished goods inventory, December 31 Indirect labor Insurance (on manufacturing plant) Legal fees Maintenance on the manufacturing plant) Manufacturing plant utiities Marketing costs Other manufacturing plant costs Sales revenue Taxes (on manufacturing plant and property) Work-in-process inventory, January 1 Work-in-process inventory, December 31 $ 2.625.000 1,143,000 1,751,000 4,693,500 1,070,200 1,236,000 8,957.000 658,000 1,643,000 1,370,500 543,000 54,200 497, 300 216,400 785,100 750,250 631,880 22,655,920 216, 600 404,250 397.700 Required: a. Prepare a cost of goods manufactured and sold statement. b. Prepare an income statement. < Prey 4 of 4 !!! Next >

Answer 1

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Koufax
Answer a
Cost of goods manufactured and sold statement	Amount $	Amount $	Amount $
Beginning Work in process inventory			404,250.00
Direct materials used
Beginning Raw material inventory	1,070,200.00
Raw material Purchases	8,957,000.00
Total Raw material available for use	10,027,200.00
Less: Ending Raw material inventory	1,236,000.00
Direct materials used		8,791,200.00
Direct Labor		4,693,500.00
Manufacturing Overhead
Depreciation on manufacturing plant	1,751,000.00
Indirect Labor	543,000.00
Insurance on manufacturing plant	54,200.00
Maintenance on manufacturing plant	216,400.00
Manufacturing plant utilities	785,100.00
Other Manufacturing plant costs	631,880.00
Taxes on Manufacturing plant and property	216,600.00
Total Manufacturing Overhead		4,198,180.00
Total Manufacturing costs			17,682,880.00
Total cost of work in process			18,087,130.00
Less: Ending Work in process inventory			397,700.00
Cost of goods manufactured this year			17,689,430.00
Beginning Finished goods inventory			1,643,000.00
Cost of goods available for sale			19,332,430.00
Less: Finished goods inventory, ending			1,370,500.00
Cost of goods sold (to income statement)			17,961,930.00
Answer b
Income Statement	Amount $	Amount $
Sales Revenues
Sales Revenues		22,655,920.00
Less: Cost of goods sold		17,961,930.00
Gross Profit		4,693,990.00
Less: Operating costs
Administrative Salaries	2,626,000.00
Depreciation on Administrative building	1,143,000.00
Distribution costs	658,000.00
Legal fees	497,300.00
Marketing costs	750,250.00
Total Operating costs		5,674,550.00
Net Income		(980,560.00)