Question

StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Raw materials Work in process Finished goods Beginning Inventory $28, 4ee 22.000 79,400 Ending Inventory $26, 1ee 46, 10e 70, eee Additional information for the month of March follows: Raw materials purchases Indirect materials used Direct labor Manufacturing overhead applied Selling, general, and administrative expenses Sales revenue $ 41,900 1.2ee 64.ee 36,900 24,800 237, see Required: 1. Based on the above information, prepare a cost of goods manufactured report. 2. Based on the above information, prepare an income statement for the month of March

Answer 1

SOLUTION : 1
	STATEMENT OF COST OF GOODS MANUFACTURED AND COST OF GOODS SOLD
		Amount	Amount
	Current manufacturing costs:
	Opening Raw materials	$               28,400
	Add: Purchases	$               41,900
	Total Available	$               70,300
	Closing Raw materials	$               26,100
	Material used in product		$              44,200
	Labor Cost		$              64,000
	Manufacturing Overhead
	Indirect Material is used	$                 1,200
	Manufacturing Overhead Applied	$               36,900
			$              38,100
	Total manufacturing cost		$           1,46,300
	Opening Work-in-process,		$              22,000
	Total costs in process		$           1,68,300
	Ending Work-in-process		$              46,100
	Cost of goods manufactured		$           1,22,200
SOLUTION : 2
		AMOUNT	AMOUNT
	Sales Revenue		$           2,37,500
	Less: Cost of Goods Sold
	Beginning Finished Goods inventory	$               79,400
	Add: Cost of Goods Manufactured	$           1,22,200
	Total Goods Available	$           2,01,600
	Less: Ending Finished Goods inventory	$               70,000
	Cost of Goods Sold		$           1,31,600
	Gross Profit		$           1,05,900
	Selling , General and administrative Expenses		$              24,800
	Net Income (Loss) from Operations		$              81,100