Question

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May. Rainier Company $100,000.00 (a) 950,000.00 938,500.00 2,860,000.00 1,800,000.00 Yakima Company 548,200.00 50,000.00 710,000.00 2 Materials inventory, May 1 3 Materials inventory, May 31 + Materials purchased 5 Cost of direct materials used in production Direct labor 7 Factory overhead Total manufacturing costs incurred during Total manufacturing costs 10 Work in process inventory, May 1 (a) 446,000.00 2,484,200.00 2,660.600.00 176,400.00 5,998,500.00 400,000.00 382,000.00 in process inventory, May

Answer 1

A.

	rainer company($)	yakima company($)
materials inventory,may 1	100000	48200
materials inventory,may 31	111500	50000
materials purchased	950000	710000
cost of direct materails used in production	938500	708200
direct labour	2860000	1330000
factory overhead	1800000	446000
total manufacturing cost incurred during may	5598500	2484200
total manufacturing costs	5998500	2660600
work in process inventory may 1	400000	176400
work in process inventory may 31	382000	344900
cost of goods manufactured	6016500	2491500
finished goods inventory may 1	615000	190000
finished goods inventory may 31	596500	211500
sales	9220000	4550000
cost of goods sold	6035000	2470000
gross profit	3185000	2080000
operating expenses	1000000	1500000
net income	2185000	580000

B.

DIRECT MATERIALS:-
beginning raw material inventory	48200
add:purchase of raw material	710000
less:closing rawmaterail inventory	50000
direct material used in production(1)	708200
direct labour(2)	1330000
factory overhead(3)	446000
total manufacturing cost incurred during may(1+2+3)	2484200

C.

sale	4550000
less:cost of goods sold	2470000
gross profit	2080000
less:operating expenses	1500000
net income	580000