Question

Problem 14-04A The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020. Raw Materials Inventory 7/1/19 Raw Materials Inventory 6/30/20 Finished Goods Inventory 7/1/19 Finished Goods Inventory 6/30/20 Work in Process Inventory 7/1/19 Work in Process Inventory 6/30/20 Direct Labor Indirect Labor Accounts Receivable $49,900 45,000 96,100 28,500 22,700 29,200 145,050 27,360 34,100 Factory Insurance Factory Machinery Depreciation Factory Utilities Office Utilities Expense Sales Revenue Sales Discounts Plant Manager's Salary Factory Property Taxes Factory Repairs Raw Materials Purchases Cash $4,800 17,100 30,500 9,550 556,800 4,500 65,800 9,910 1,500 98,800 37,200

Answer 1

Cost of Goods manufactured
Beginning Work in progress, 7/1/19		22700
Raw materials:
Beginning Raw materials inventory, 7/1/19	49900
Add: Raw Materials purchased	98800
Total Raw materials available for use	148700
Less: Closing stock of Raw materials, 6/30/20	45000
direct materials used		103700
Direct labour		145050
Add: manufacturing overhead
plant manager salary	65800
Factory utilities	30500
Factory insurance	4800
factory property tax	9910
Indirect labour	27360
factory machine depreciation	17100
factory repairs	1500
Total manufacturing overhead		156970
Total cost of Work in Process		428420
Less: Ending Work in progress, 6/30/20		29200
Cost of Goods manufactured		399220
INCOME STATEMENT
Sales		556800
less: Sales discount		4500
NET SALE		552300
Less: cost of goods sold
Add: Beginning finished Goods, 7/1/19	96100
Cost of Goods manufactured	399220
Cost of goods available for sale	495320
Less: ending finished Goods, 6/30/20	28500	466820
GROSS PROFIT		85480

CURRENT ASSET SECTION
Cash		37200
Account receivables		34100
Add Inventories:
Ending Raw materials	45000
Ending Work in process	29200
Ending finished goods	28500
		102700
Total current assets		174000