Question

1. Determine the amount of the missing items, identifying them by letter. Enter all amounts as positive numbers.

2. Prepare on Company's statement of cost of goods manufactured for December .

3. Prepare on Company's income statement for December.
Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December. Off Materials inventory, December 1 Materials inventory, December 31 On Company $84,850 (a) 215,520 227.400 Company $112,850 127,520 (a) Materials purchased Cost of direct materials used in production Direct labor (6) 253,910 Factory overhead 126,390 Total manufacturing costs incurred in December Total manufacturing costs Work in process inventory, December 1 319,880 99,270 (b) 809,460 162,910 730,140 1,002,110 271,970 (c) 723,370 126,390 137,460 Work in process inventory, December 31 Cost of goods manufactured Finished goods inventory, December 1 Finished goods inventory, December 31 Sales 143,400 150,180 1,250,690 (d) (e) 162,910 1,128,500 730,140 Cost of goods sold Gross profit (e) Operating expenses Net income 250,530

Answer 1

On Company and Off Company 1. Determine the amounts of the missing items, identifying them by letter. 1. On Company a.$72,970 ($215,520+$84,850-$227,400) b.$646,550 ($99,270+ $319,880+ $227,400) c.$672,000 ($646,550 + $162,910-$137,460) d.$665,220 ($672,000+ $143,400-$150,180) e.$585,470 ($1,250,690-$665,220) f.$422,560 ($585,470-$162,910) Off Company a.$364,510 ($349,840 $127,520-$112,850) b.$349,840 ($730,140 - $126,390- $253,910) C.$550,710 ($1002,110+ $271,970-$723,370) d.$119,620 ($723,370 $126,390 -$730,140) e.$398,360 ($1128,500-$730,140) f.$147,830 ($398,360 $250,530) On Company Statement of Cost of Goods Manufactured For the Month Ended December 31 Work in process inventory, December 1 162910 Direct materials: Materials inventory, December 1, 84850 Purchases 215520 Cost of materials available for use 300370 Less : materials inventory December 31, Cost of direct materials used in production -72970 227400 Direct labor 319880 Factory overhead Total manufacturing costs incurred during Dec. 99270 646550 Total manufacturing costs 809460 Less work in process inventory,December 31, -137460 Cost of goods manufactured 672000 On Company Income Statement For the Month Ended December 31 Sales 1250690 Cost of goods sold: Finished goods inventory, December 1 143400 Cost of goods manufactured 672000 Cost of finished goods available for sale 815400 Less: finished goods inventory,December 31 Cost of goods sold Gross profit -150180 665220 585470 Operating expenses 162910 Net income 422560