Question

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May: Rainier Company Yakima Company 28196000 $179,000.00 178,000.00 41,20000 2Materials inventory, May 1 Materials inventory, May 31 4Materials purchased 5Cost of direct materials used in production 6 Direct labor 712,20000 51,600.00 059,200.00 325,800.00 Factory overhead 180,400.00 1,032,000.00 2677600.00 1475,500.00 443,500.00 Total manufacturing costs incurred in May 9 Total manufacturing costs 0 Work in process inventory, May 1 1 Work in process inventory, May 31 12 Cost of goods manufactured 13 Finished goods inventory, May 1 41,00000 52,000.00 1,025,500.00 78,200.00 95,400.00 205,000.00 Finished goods inventory, May 31 15 Sales 16 Cost of goods sold 17 Gross profit 8Operating expenses 19Net income 1000001671,00000 ,053,500.00 45,000.00 82,900.00

Answer 1

a. Missing amount are indicated as follows:
	Rainer Company	Yakima Company
a.	$                           242,560.00	$                            342,200.00
b.	$                        2,136,600.00	$                            509,400.00
c.	$                        2,766,600.00	$                            450,000.00
d.	$                        2,749,400.00	$                            177,000.00
e.	$                        1,394,600.00	$                            617,500.00
f.	$                           849,600.00	$                            234,600.00
Note: The above missing amounts are calculated as follows:
	Rainer Company	Yakima Company
Material Inventory, May 1	$                           281,960.00	$                            179,000.00
Material Inventory, May 31	$                           242,560.00	$                            178,000.00
	(281960+712200-751600)
Material Purchased	$                           712,200.00	$                            341,200.00
Cost of direct material used in the production	$                           751,600.00	$                            342,200.00
		(179000-178000+341200)
Direct Labor	$                        1,059,200.00	$                            509,400.00
		(1032000-342200-180400)
Factory overhead	$                           325,800.00	$                            180,400.00
Total Manufacturing Costs incurred in May	$                        2,136,600.00	$                         1,032,000.00
	(751600+1059200+325800)
Total Manufacturing Costs	$                        2,677,600.00	$                         1,475,500.00
Work in Process Inventory, May 1	$                           541,000.00	$                            443,500.00
Work in Process Inventory, May 31	$                           452,000.00	$                            450,000.00
		(1475500-1025500)
Cost of Goods Manufactured	$                        2,766,600.00	$                         1,025,500.00
	(2677600+541000-452000)
Finished Goods Inventory, May 1	$                           478,200.00	$                            205,000.00
Finished Goods Inventory, May 31	$                           495,400.00	$                            177,000.00
		(1025500+205000-1053500)
Sales	$                        4,144,000.00	$                         1,671,000.00
Cost of Goods Sold	$                        2,749,400.00	$                         1,053,500.00
	(2766600+478200-495400)
Gross profit	$                        1,394,600.00	$                            617,500.00
	(4144000-2749400)	(1671000-1053500)
Operation expenses	$                           545,000.00	$                            234,600.00
		(617500-382900)
Net income	$                           849,600.00	$                            382,900.00
	(1394600-545000)
b. Yakima Company
Statement of Cost of Goods Manufactured
For the Month Ended May 31
Material Purchased		$                            341,200.00
Add: Material Inventory, May 1		$                            179,000.00
Less: Material Inventory, May 31		$                          (178,000.00)
Cost of direct material used in the production		$                            342,200.00
Add: Direct Labor		$                            509,400.00
Add: Factory overhead		$                            180,400.00
Total Manufacturing Costs incurred in May		$                         1,032,000.00
Add: Work in Process Inventory, May 1		$                            443,500.00
Total Manufacturing Costs		$                         1,475,500.00
Less: Work in Process Inventory, May 31		$                          (450,000.00)
Cost of Goods Manufactured		$                         1,025,500.00
c. Yakima Company
Income Statement
For the Month Ended May 31
Sales		$                         1,671,000.00
Less: Cost of Goods Sold:
Cost of Goods Manufactured	$                        1,025,500.00
Add: Finished Goods Inventory, May 1	$                           205,000.00
Less: Finished Goods Inventory, May 31	$                         (177,000.00)	$                       (1,053,500.00)
Gross Profit		$                            617,500.00
Less: Operating Expenses		$                          (234,600.00)
Net Income		$                            382,900.00