Question

StoSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Raw materials Work in process Finished goods Beginning Inventory $28,100 21.900 79,900 Ending Inventory $25,600 46,800 68,500 Additional information for the month of March follows: Raw materials purchases Indirect materials used Direct labor Manufacturing overhead applied Selling general, and administrative expenses Sales revenue 40,500 1,900 62,900 35.200 23,200 236,500 Required: 1. Based on the above information, prepare a cost of goods manufactured report. 2. Based on the above information, prepare an income statement for the month of March STORSMART COMPANY Cost of Goods Manufactured Report For the Month of March Beginning Raw Materials Inventory Plus: Raw Material Purchases Less: Indirect Material Used Less: Ending Raw Materials Inventory Direct Materials used in Production Direct Labor Manufacturing Overhead Total Current Manufacturing Costs Plus: Beginning Work in Process Inventory Total Work in Process 212 words English (United States) Focus I

Answer 1

ANSWER

1.

StorSmart Company Cost of Goods Manufactured For the month ended March 31
Direct materials used	$	$
Raw materials beginning inventory	28,100
Add: Purchases	40,500
Less: Raw materials ending inventory	( 25,600)
Lss: Indirect materials used	(1,900)	41,100
Direct labor		62,900
Manufacturing overhead applied		35,200
Total Manufacturing Costs		139,200
Add: Work in Process beginning inventory		21,900
Total cost of Work in Process		161,100
Less: Work in Process ending inventory		(46,800)
Cost of Goods Manufactured		114,300

2.

StorSmart Company Income Statement For the month ended March 31
Sales Revenue		$ 236,500
Less: Cost of Goods Sold
Beginning Finished Goods Inventory	$ 79,900
Add: Cost of Goods Manufactured	114,300
Cost of Goods Available	194,200
Less: Ending Finished Goods Inventory	(68,500)
Cost of Goods Sold		125,700
Gross Profit		110,800
Selling, General and Administrative Expenses		23,200
Net Operating Income		$ 87,600

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