Question

ACCT 2301 Handout #4 Preparing an Income Statement Klyn Company provided the following information regarding its operations for the month ending September 30, 2020: Administrative costs Depreciation on factory equipment Indirect materials Marketing and distribution costs Salanes for factory supervisors Wages for production workers Raw materials used Sales revenue Selling costs Utilities for production facilities $15,000 6,000 1,000 12,000 10,000 13,000 19.000 98,000 9,000 4,000 Number of units produced Number of unuts sold 20,000 15,000 Required: 1) Compute the firm's total manufacturing overhead cost. 2) Prepare a schedule of inventory costs that shows total product costs, ending inventory, and cost of goods sold. 3) Prepare an income statement for the month ending September 30, 2020.

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer 2 Part 1) 3 Statement of Manufacturing Cost 4 Particular Amount 5 Depreciation on factory equipment 6 Indirect Material $ 7 Salaries for factory supervisior 8 Utilities for production factilities $ 6,000 1,000 10,000 4,000 10 Total Manufacturing Cost $ 21,000 12 Part 2) Schduele of inventory costs 14 Particular Amount 15 Raw Material Used 16 Wages for production workers $ 17 Total Manufacturing Cost $ 18 Total Product Costs 19 Number of units produced 20 Product Cost Per Unit 21 Cost of goods sold (15000*2.65) 22 Cost of ending inventory (5000*2.65 $ 19,000 13,000 21,000 53,000 20,000 39,750 13,250

4 Part 3) 6 Klyn Company Income Statement 3 For the Month Ended September 30, 2020 9 Particular Amount O Sales Revenue $ 1 Cost of goods sold $ 2 Gross Margin 3 Adminstrative cost 4 Marketing and distribution cost $ 5 Selling cost $ 5 Net Profit $ $ 98,000 39,750 58,250 15,000 12,000 9,000 22,250 B. For any help please comment in the comment box 9 Thank You