Question

Now prepare the income statement for Rouse Corporation (in millions). (Use parentheses or a minus sign for operating losses.) Rouse Corporation Income Statement For the Year Ended December 31, 2017 (in millions) Cost of goods sold: Cost of goods manufactured $ 628 Cost of goods sold Ending finished goods, Dec. 31, 2017 Revenues Cost of goods sold Gross margin Marketing, distribution, and customer-service costs $ Operating income/(loss)

Answer 1

960 Rouse Corporation Income Statement For the Year Ended December 31, 2017 (In millions) Revenues $ Cost of Goods Sold Finished Goods Inventory, Jan. 1. 2017 $ 73 Add: Cost of Goods Manufactured S 628 Cost of Goods available for sale Less: Finished Goods Inventory, Dec 31, 2017 54 Cost of Goods Sold S Gross Margin $ Marketing, distribution, and customer-service costs S Operating income(loss) S 701 647 313 240 73 Working Notes:

S $ 299 105 Rouse Corporation Statement of Cost of Goods Manufactured For the Year Ended December 31, 2017 (In millions) Direct Materials Costs: Direct Materials Inventory. Jan. 1,2017 S 12 Purchases of Direct materials $ 310 Cost of materials available for use $ 322 Less: Direct Materilas Inventory, dec. 31, 2017 S 23 Direct Materials Used Direct Manufacturing Labor Factory Overhead: Depreciation - Plant and equipment Plant Supervisory salaries Miscellenious Plant Overhead Plant Supplies Used Plant Utilities Indirect Manufacturing Labor Total Factory overhead Total Manufacturing costs incured during the year Add: Work in Process Inventory, Jan. 1.2017 Total Manufacturing costs Less: Work in Process Inventory, Dec 31, 2017 Cost of Goods Manufactured S 217 621 11 632 628