Question

1 Data Table Neal Company Beginning of 2017 23,000 24,000 10,000 Direct materials inventory Work-in-process inventory Finished-goods inventory Purchases of direct materials Direct manufacturing labor Indirect manufacturing labor Plant insurance End of 2017 25,000 21,000 22,000 76,000 20,000 17,000 6,000 16,000 3,000 90,000 27,000 Depreciation-plant, building, and equipment Repairs and maintenance-plant Marketing, distribution, and customer-service costs General and administrative costs Print Done

Answer 1

Neal Company
Schedule of Cost of Goods Manufactured
For the Year Ended December 2017, (in thousands)
Direct Materials:
Direct materials inventory, beginning	23,000
Purchase of direct materials	76,000
Total direct materials available	99,000
Direct materials inventory ending	-25,000
Direct materials used		74,000
Direct manufacturing labor		20,000
Indirect manufacturing costs:
Indirect manufacturing labor	17,000
Plant insurance	6,000
Depreciation- plant, building and equipment	16,000
Repairs and maintenance - plant	3,000
Total indirect manufacturing costs		42,000
Manufacturing costs incurred during 2017		$136,000
Beginning work in process inventory		24,000
Total manufacturing costs to account for		$160,000
Ending work in process inventory		-21,000
Cost of Goods Manufactured		$139,000

Neal Company
Income Statement
For the Year Ended December 2017, (in thousands)
Net sales		275,000
Cost of goods sold:
Finished goods inventory, beginning	10,000
Cost of goods manufactured	139,000
Cost of goods available for sale	149,000
Finished goods inventory, ending	-22,000
Cost of goods sold		-127,000
Gross profit		$148,000
Operating Costs:
Marketing, distribution and customer service costs	90,000
General and administrative costs	27,000
Total operating costs		-117,000
Operating Income		$31,000

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