Question

One of Toyota Company's subsidiaries reports the following account balances for the year ended December 31, 2018 (in thousands). Direct materials Direct materials Jan. 1,2018 Dec. 31, 2018 20,800 22,250 Work in process Work in process Jan. 1, 2018 Dec. 31, 2018 5,700 4,650 Finished goods Finished goods Jan. 1, 2018 Dec. 31, 2018 102,500 105,250 Direet materials purchased Direct manufacturing labor 452,500 335,750 Plant- leasing costs Property taxes on plant and equipment Plant wide- utilities Fire insurance on plant and equipment Depreciation- plant equipment Amortization-plant leasehold improvements Indirect labor Miscellaneous plant overhead 4,071 960 13,500 500 5,400 2,200 52,603 22,126 Revenue Marketing, distribution and customer service costs General and administration costs 1,350,000 240,500 140,700 Prepare (next page): A Schedule of Cost of Goods Manufactured, in good form, for the year ended December 31, 2018. a. b. An Income Statement, in good form, for the year ended December 31, 2018.

Answer 1

Statement of Cost of Goods Manufactured
For the period ended December 31, 2018
	Amount	Amount
Current manufacturing costs:
Cost of materials placed in production:
Opening Raw materials	$               20,800
Add: Purchases	$           4,52,500
Total Available	$           4,73,300
Closing Raw materials	$               22,250
		$           4,51,050
Indirect Material
Direct manufcturing labour	$           3,35,750
Plant - Leasing Costs	$                 4,071
Property taxes on plant and equipment	$                     960
Plant wide - Utilities	$               13,500
Fire Insurance on plant Equipment	$                     500
Depreciation on plant equipment	$                 5,400
Amortization - plant leashold improvement	$                 2,200
Direct Labour	$               52,603
Miscllaneous plant overhead	$               22,126
		$           4,37,110
Add: Opening Work-in-process,		$                 5,700
Total costs in process		$           8,93,860
Less: Ending Work-in-process		$                 4,650
Cost of goods manufactured		$           8,89,210
Add: Opening Finished Goods inventory		$           1,02,500
Total Cost available for Sold		$           9,91,710
Less: Closing Stock of Finished Goods		$           1,05,250
Cost of Goods Sold		$           8,86,460
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2018
Saels Revenue	$         13,50,000
Less: Cost of Goods Sold	$           8,86,460
Gross Revenue	$           4,63,540
LEsS: Expenses
Marketing , Distribution and customer service	$           2,40,500
General and adminstrative cost	$           1,40,700
Total Expenses	$           3,81,200
Net Revenue	$               82,340