Question

StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Raw materials Work in process Pinished goods Beginning Inventory $28.000 21,600 78,500 Ending Inventory $26.500 46,000 68,100 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 $ 40,300 1.500 63.600 35,800 23,500 236,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Based on the above information, prepare a cost of goods manufactured report. STORSMART COMPANY Cost of Goods Manufactured Report For the Month of March Direct Materials used in Production Total Current Manufacturing Costs $ Total Work in Process Cost of Goods Manufactured

Answer 1

1.

Cost of goods manufactured report

Raw material beginning	28,000
Raw material purchases	40,300
Raw materials available	68,300
Raw material ending	- 26,500
Direct materials used in production	41,800
Direct labor	63,600
Manufacturing overheads applied	35,800
Total current manufacturing costs	141,200
Beginning work in process	21,600
Total work in process	162,800
Ending work in process	- 46,000
Cost of goods manufactured	116,800

2.

Income statement

Sales revenue		236,000
Less: Cost of goods sold
Beginning finished goods	78,500
Cost of goods manufactured	116,800
Ending finished goods	- 68,100
Cost of goods sold		- 127,200
Gross profit		108,800
Selling, general and administrative expenses		- 23,500
Operating income		$85,300

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