Question

sestion 1: Finn Inc. makes hats. For the month of March 20 Account Direct Materials Work in Process the month of March 2019, Finn Inc had these inventory account balance Betinnor Balance Clan 1) Endine Balance can 3) $51,000 $34,000 $72,000 $89,000 $23,000 $26,000 Finished Goods During March 2019, Finn Inc. had the following transactions: a. Spent $47,000 on direct materials b. Spent $29,000 on direct labor c. Calculated manufacturing overhead to be $25,000 d. Spent $20,000 on administrative expenses e. Spent $45,000 on selling expenses f. Sold 57,000 hats for $5 each Using this information please create a partial income statement for March 2019 for Finn Inc. T T T T

Answer 1

Answer to Q#1 (First question in the list): Finn Inc. Income Statement For the Month Ended March 31, 2019 Sales Revenue Cost of Goods Sold Gross Profit Less: Selling Expenses $45,000 Administrative Expenses $20,000 Total Sell. & Admin. Expenses Net Income $285,000 [57,000 units x $5] $98,000 (Ref: Workings] $187,000 $65,000 $122,000

Workings: Finn Inc. Schedule of Cost of Goods Sold For the Month Ended March 31, 2019 Direct Materials used: Direct Materials, beginning balance $51,000 Add: Direct Materials purchased $47,000 Total Direct Materials available for use $98,000 Less: Direct Materials, Ending balance $34,000 Direct Materials used in the production Direct labor Total manufacturing overhead applied Total Manufacturing Cost incurred during the year Add: Work in Process, Beginning balance Total Manufacturing Cost to Account for Less: Work in Process, Ending balance Cost of Goods Manufactured Add: Finished Goods, Beginning balance Total Finished Goods Available for Sale Less: Finished Goods, Ending balance Cost of Goods Sold $64,000 $29,000 $25,000 $72,000 $190,000 $89,000 $101,000 $23,000 $124,000 $26,000 $98,000