Question

Stor Smart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: points av materials Raw materials Work in process Finished goods Beginning Inventory $30,000 21,400 80,000 Ending Inventory $ 25, 200 46,000 68,000 eBook Print Additional information for the month of March follows: References Raw materials purchases Indirect materials used Direct labor Manufacturing overhead applied Selling, general, and administrative expenses Sales revenue $ 40,400 1,100 62,500 35, 300 24,000 237,000 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

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

StorSmart Company
Answer 1
Cost of goods manufactured	Amount $
Beginning Raw material inventory	30,000.00
Raw material Purchases	40,400.00
Total Raw material available for use	70,400.00
Less: Ending Raw material inventory	25,200.00
Direct materials used	45,200.00
Direct Labor	62,500.00
Manufacturing Overhead
Manufacturing Overhead applied	35,300.00
Indirect materials used	1,100.00
Total Manufacturing Overhead	1,100.00
Total Manufacturing costs	108,800.00
Beginning Work in process inventory	21,400.00
Total cost of work in process	130,200.00
Less: Ending Work in process inventory	46,000.00
Cost of goods manufactured	84,200.00
Cost of goods sold	Amount $
Beginning Finished goods inventory	80,000.00
Cost of goods manufactured	84,200.00
Cost of goods available for sale	164,200.00
Less: Finished goods inventory, ending	68,000.00
Cost of goods sold	96,200.00
Answer 2
Income Statement	Amount $
Sales Revenues
Sales Revenues	237,000.00
Net Sales	237,000.00
Less: Cost of goods sold	96,200.00
Gross Profit	140,800.00
Less: Operating Expenses
Selling, general & administrative	24,000.00
Total Operating Expenses	24,000.00
Net Income	116,800.00