Question

1 Data Table Begin by preparing a schedule of cost of goods manufactured Kelley Company Schedule of Cost of Goods Manufactured Year Ended December 31, 2018 in millions) Beginning Ending Inventory balances Work in Process Finished Goods Other Information Sales Revenue Seling and Administrative Expenses Direct Labor Manufacturing Overhead actual and located Direct Materials Used Cost of Goods Manufactured Now prepare an income statement Kelley Company Done

Answer 1

11 Kelley Company Schedule of Cost of Goods Manufactured Year Ended December 31, 2018 in millions) Beginning Work in Process Inventory Direct Materials used Direct Labour Manufacturing overhead Total Manufacturing Costs Total Cost of Work in Process Less: Ending Work in process Inventory Cost of goods Manufactured 92 72

Kelley Company Income Statement Year Ended December 31, 2018 (in millions) Sales Revenue Cost of Goods Sold Beginning Finished Goods Add: Cost of goods Manufactured Cost of goods available for Sale Less: Ending Finished Goods Inventory Cost of goods Sold Gross Profit Selling and adminidtrative Expenses Net income (Loss) 67 243 92 151 $