Question

62. D.M --                      $7000                D.L --                            $2000

M. Overhead -                $10,000             Work-in-process (bb)       $ ?

End work in process         $4000                C.G.M                           $18,000

Revenue                        $25,000             F.Goods(bb)                   $6,000

C.G.S                            $ ?                    F. Goods(eb)                  $9,000

Operating expense           $6000                Net income                     $ ?

Gross margin (profit)    $ ?

What is the cost of goods sold?

what is net income?

Answer 1

62)

Cost of Goods Manufactured (C.G.M)	$18,000
Add: End work in process	$4,000
Less: Direct Materials (DM)	($7,000)
Less: Direct Labor (DL)	($2,000)
Less: Manufacturing Overhead (M.Overhead)	($10,000)
Work-in-Process (bb)	$3,000
Cost of Goods Manufactured (C.G.M)	$18,000
Add: Finished Goods (bb)	$6,000
Less: Finished Goods (eb)	($9,000)
Cost of Goods Sold (C.G.S)	$15,000
Revenue	$25,000
Less: Cost of Goods Sold	($15,000)
Gross Margin (profit)	$10,000
Gross Margin (profit)	$10,000
Less: Operating Expense	($6,000)
Net Income	$4,000
Proving with Cost Sheet: (supportings)
Work-in-Process (bb)	$3,000
Add: Direct Materials (DM)	$7,000
Add: Direct Labor (DL)	$2,000
Add: Manufacturing Overhead (M.Overhead)	$10,000
	$22,000
Less: End work in process	($4,000)
Cost of Goods Manufactured (C.G.M)	$18,000
Add: Finished Goods (bb)	$6,000
Less: Finished Goods (eb)	($9,000)
Cost of Goods Sold (C.G.S)	$15,000