Question

Ex. 2
Cepeda Corporation has the following cost records for June 2018
Indirect factory labor $ 4,500 Factory utilities $ 400
Direct materials used 20,000 Depreciation, factory equipment 1,400
Work in process, 6/1/18 3,000 Direct labor 40,000
Work in process, 6/30/18 3,800 Maintenance, factory equipment 1,800
Finished goods, 6/1/18 5,000 Indirect materials 2,200
Finished goods, 6/30/18 7,500 Factory manager’s salary 3,000
.
Instructions
a. Prepare a cost of goods manufactured schedule for June 2018.
b. Prepare an income statement through gross profit for June 2018 assuming sales revenue is $92,100.

Answer 1

a.	Cepeda Corporation
	Cost of Goods Manufactured Schedule
	Work in Process Inventory, 6/1/18		$3,000
	Direct Materials Used	$20,000
	Direct Labor	$40,000
	Manufacturing Overhead	$13,300
	Total manufacturing costs		$73,300
	Total Cost of work in process inventory		$76,300
	Less: Work in Process Inventory, 6/30/18		$3,800
	Cost of goods manufactured		$72,500
	Working
	Total Manufacturing Overhead
	Indirect factory labor	$4,500
	Factory utilities	$400
	Depreciation, factory equipment	$1,400
	Maintenance, factory equipment	$1,800
	Indirect materials	$2,200
	Factory manager’s salary	$3,000
		$13,300
b.	Cepeda Corporation
	Income Statement (Partial)
	Sales Revenue		$92,100
	Cost of goods sold
	Finish goods inventory, 1/1	$5,000
	Cost of goods manufactured	$72,500
	Cost of goods available for sale	$77,500
	Less: Finish goods inventory, 31/1	$7,500
	Cost of Goods Sold		$70,000
	Gross Profit		$22,100