Question

U 9 JUJ JA Chapter 14 HW 0 Part 2 of 2 Required information Use the following information for the Exercises below. The following selected account balances are provided for Delray Mfg. 20 points Sales $ (8 00:57:18 Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases Direct labor Factory supplies used (indirect materials) Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, ending Work in process inventory, ending Finished goods inventory, ending 1,469,000 37,000 54,500 63,280 183,900 225,000 21,700 50,000 5,250 54,000 109,000 134,089 48,100 41,000 73,400 eBook Print References Exercise 14-14 Income statement preparation LO P2 Prepare an income statement for Delray Mfg (a manufacturer).

Answer 1

Answer

DELRAY MFG
Income Statement
Sales		$     1,469,000
Cost of Goods Sold
Finished goods inventory, beg	$        63,200
Cost of Goods Manufactured            [Refer schedule of Cost of Goods Manufactured]	$      542,250
Cost of Goods available for sale	$      605,450
Less: Finished goods inventory, ending	$        73,400
Cost of Goods sold		$        532,050
Gross profit		$        936,950
Operating Expenses:
Advertising expenses	$      109,000
General and Administrative Expenses	$      134,000
Total operating expenses		$        243,000
Operating Income		$        693,950

DELRAY MFG
Schedule of Cost of Goods Manufactured
Direct Materials:
Raw materials inventory, Beg	$        37,000
Add: Raw materials purchases	$      183,900
Raw materials available for use	$      220,900
Less: Raw materials inventory, ending	$        48,100
Direct Materials used		$        172,800
Direct labor		$        225,000
Factory Overhead:
Factory computer supplies used	$        21,700
Indirect labor	$        50,000
Repairs - factory equipment	$          5,250
Rent cost of factory building	$        54,000
Total factory overhead costs		$        130,950
Total manufacturing costs		$        528,750
Add: Work in Process inventory, Beg		$          54,500
Total Cost of work in Process		$        583,250
Less: work in Process inventory, ending		$          41,000
Cost of Goods Manufactured		$        542,250