Question

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020.

Raw Materials Inventory 7/1/19		$56,700		Factory Insurance		$5,100
Raw Materials Inventory 6/30/20		40,400		Factory Machinery Depreciation		17,300
Finished Goods Inventory 7/1/19		96,100		Factory Utilities		30,600
Finished Goods Inventory 6/30/20		20,100		Office Utilities Expense		8,550
Work in Process Inventory 7/1/19		28,600		Sales Revenue		560,600
Work in Process Inventory 6/30/20		24,500		Sales Discounts		4,800
Direct Labor		142,850		Plant Manager’s Salary		61,500
Indirect Labor		25,160		Factory Property Taxes		9,810
Accounts Receivable		34,800		Factory Repairs		2,000
				Raw Materials Purchases		97,600
				Cash		41,900

A) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.)

b) Prepare an income statement through gross profit.

c) Prepare the current assets section of the balance sheet at June 30, 2020. (List Current Assets in order of liquidity.)

Answer 1

A)

Cost of Goods Manufactured Schedule
For the Year Ended June 30, 2020
Work in Process Inventory 7/1/19			28600
Direct Materials
Raw Materials Inventory 7/1/19	56700
Raw Materials Purchases	97600
Total Raw Materials Available for Use	154300
Less: Raw Materials Inventory 6/30/20	40400
Direct Materials Used		113900
Direct Labor		142850
Manufacturing Overhead:
Indirect Labor	25160
Factory Insurance	5100
Factory Machinery Depreciation	17300
Factory Utilities	30600
Plant Manager’s Salary	61500
Factory Property Taxes	9810
Factory Repairs	2000
Total Manufacturing Overhead		151470
Total Manufacturing Costs			408220
Total Cost of Work in Process			436820
Less: Work in Process Inventory 6/30/20			24500
Cost of Goods Manufactured			412320

B)

(Partial) Income Statement
For the Year Ended June 30, 2020
Sales Revenues
Sales Revenue	560600
Less: Sales discounts	4800
Net Sales		555800
Cost of goods sold
Finished Goods Inventory 7/1/19	96100
Cost of goods manufactured	412320
Cost of goods available for sale	508420
Less: Finished Goods Inventory 6/30/20	20100
Cost of goods sold		488320
Gross profit		67480

C)

(Partial) Balance Sheet
June 30, 2020
Assets
Current assets
Cash		41900
Accounts Receivable		34800
Inventories:
Finished goods	20100
Work in process	24500
Raw materials	40400	85000
Total current assets		161700