Question

COGM Eagles Kitchen, Inc., makes food mixers. During Jan 2019, Eagles incurred the following costs: Inventories Materials Work in Process Finished Beginning $8,000 2,000 1,000 7,000 20,000 28,000 Other Information: Direct Materials purchases 12,000 Utilities for plant to $10,000 6,000 15,000 200,000 200 6,000 Customer service hotline expense 1,000 Direct Labor Sales salaries expense Delivery expenseg Sales revenue 300,000 Required: 1. Prepare a Schedule of Cost of Goods Manufactured for Eagles for the month ended January 31, 2019. Prepare an Income Statement for the month ended January 31,2019. 2. 42000 cost ed es 7000)

Answer 1

Solution 1:

Eagles
Schedule of cost of goods manufactured For the month ended Jan 31, 2019
Particulars		Amount
Direct material consumed:
Beginning inventory of material	$8,000.00
Add: Direct material purchases	$12,000.00
Less: Ending inventory of material	$7,000.00
Direct material consumed		$13,000.00
Direct labor		$200,000.00
Manufacturing overhead:
Plant janitorial services	$200.00
Utilities for Plant	$10,000.00
Rent for Plant	$6,000.00
Total manufacturing overhead		$16,200.00
Total manufacturing cost incurred during the month		$229,200.00
Add: Beginning WIP		$2,000.00
Total cost of work in process		$231,200.00
Less: Ending WIP		$20,000.00
Cost of goods manufactured		$211,200.00

Solution 2:

Eagles
Income Statement For the month ended Jan 31, 2019
Particulars		Amount
Sales Revenue		$300,000.00
Cost of goods sold:
Beginning finished goods inventory	$1,000.00
Add: Cost of goods manufactured	$211,200.00
Less: Ending finished goods inventory	$28,000.00
Cost of goods sold		$184,200.00
Gross Profit		$115,800.00
Operating Expenses:
Sales Salaries expense	$6,000.00
Delivery expense	$1,000.00
Customer service hotline expense	$15,000.00
Total Operating Expenses		$22,000.00
Net Operating Income		$93,800.00