Question

Depreciation expense—administrative office	$	34,450
Depreciation expense—plant and equipment		89,500
Direct labor—wages		514,800
Materials Inventory, Dec. 31		31,250
Materials Inventory, Jan. 1		22,500
Direct materials purchases		172,500
Finished goods inventory, Dec. 31		24,400
Finished goods inventory, Jan. 1		15,700
Heat, light, and power—plant		46,100
Indirect labor		26,400
Property taxes—plant		35,750
Sales representatives’ salaries		148,500
Sales revenue		1,566,000
Factory supervisor’s salary		67,050
Supplies—administrative office		17,400
Supplies—plant		29,700
Work-in-process inventory, Dec. 31		10,400
Work-in-process inventory, Jan. 1		24,750

Can you help me write a statement of cost of Goods Manufactured and an income statement? Both for year ending Dec 31st

Answer 1

Cost of Goods Manufactured
Direct Materials consumed
Materials Inventory, Jan. 1	$22,500.00
Add : Direct materials purchases	$172,500.00
Less : Materials Inventory, Dec. 31	$31,250.00
Direct Materials consumed		$163,750.00
Direct labor—wages		$514,800.00
Factory Overheads
- Depreciation expense—plant and equipment	$89,500.00
- Heat, light, and power—plant	$46,100.00
- Indirect labor	$26,400.00
- Property taxes—plant	$35,750.00
- Factory supervisor’s salary	$67,050.00
- Supplies—plant	$29,700.00	$294,500.00
Total Cost of Manufacturing		$973,050.00
Add : Work-in-process inventory, Jan. 1		$24,750.00
Less : Work-in-process inventory, Dec. 31		$10,400.00
Cost of Goods Manufactured		$987,400.00
Income statement
Sales Revenue		$1,566,000.00
Less : Cost of goods sold (see working)		$978,700.00
Gross Margin		$587,300.00
Less : Selling and administration Expenses
- Sales representatives’ salaries	$148,500.00
- Supplies—administrative office	$17,400.00
- Depreciation expense—administrative office	$34,450.00	$200,350.00
Net Operating Income		$386,950.00
Less : Taxes		$0.00
Net Income		$386,950.00
Working
Cost of goods sold
Cost of goods Manufactured	$987,400.00
Add : Finished goods inventory, Jan. 1	$15,700.00
Less : Finished goods inventory, Dec. 31	$24,400.00
Cost of goods sold	$978,700.00