Question

Problem 14-5A (Part Level Submission) Empire Cnmpanrls a manufacturer or smartprans. ts oortrollar resianad in October 2017. An Inexperienced slstant accountant has prepared thatcllowinq inenme statement tor the month of October 2017 For the Honth Ended October 31, 2017 Raw materias punchates Mvetising expese Gelling and adriristrative salaries Rent on factory acities Depreiationn sales ec pent Depreiation n fattory equiment ndirect labur cost Utilities expense Insurance expens2 190,000 90,000 75,000 50,000 45,000 31,00U 12,0ou Net loas 23,000 rto ctober 2017, tna company had hean pre tahla you have acquired additicnal infarmation as folows v ry month. The company, presi ent s toncernad about the accuracy of the ncome statament. As har triend you』haVA heen asked o raMew tha lncome statement and m naressary tomactinns A tare an ather manutacturn cost da 1. Imrentory balanccs at the beginning and end of Octcber were October 31 18,000 20,000 30,000 20.000 Wark In process Finished ooods S0.000

Answer 1

Answer:

EMPIRE COMPANY
Cost of Goods Manufactured Schedule
For the Month Ended October 31, 2017
Work in process, October 1			20,000
Direct materials
Raw materials inventory, October 1	18000
Raw materials purchases	264000
Total raw materials available for use	282000
Less: Raw materials inventory,	-29000
Direct materials used		253000
Direct labor		190,000
Manufacturing overhead
Factory facility rent	60000
Depreciation on factory equipment	31000
Indirect labor	28000
Factory utilities	9000
Factory insurance	4800
Total manufacturing overhead		132800
Total manufacturing cost			575,800
Total cost of work in process			595,800
Less: Work in process, October 31			-14000
Cost of goods manufactured			581,800