Question

a. Compute cost of goods manufactured schedule
b. Prepare an income statement through gross profit.
c. Show the presentation of the ending inventories on the December 31, 2017, balance sheet.

Question 6 View Policies Show Attempt History Current Attempt in Progress The following information is available for Aikman Company. January 1, 2017 2017 December 31, 2017 $23,960 $34,420 Raw materials inventory Work in process inventory 13,880 20,020 Finished goods inventory 31,470 25,320 $152,080 Materials purchased 224,990 Direct labor Manufacturing overhead 182,310 902,240 Sales revenue

Answer 1

Part A

Aikman Company Cost of Goods Manufactured Schedule For the Year Ended December 31, 2017
Work-in-Process Inventory, 1/1		13880
Direct materials:
Raw materials inventory, 1/1	23960
Materials purchased	152080
materials available for use	176040
Less: Raw materials inventory, 12/31	34420
Direct materials used		141620
Direct labor		224990
Manufacturing overhead		182310
Total manufacturing costs		548920
Total Cost of Work-in-Process Inventory		562800
Less: Work in process inventory, 12/31		20020
Cost of Goods Manufactured		$542780

Part B

Aikman Company Income Statement (Partial) For the Year Ended December 31, 2017
Sales revenue		902240
Cost of goods sold:
Finished goods, 1/1	31470
Cost of goods manufactured	542780
Cost of Goods available for sale	574250
Less: Finished goods, 12/31	25320
Cost of goods sold		548930
Gross profit		$353310

Part C

AIKMAN COMPANY (Partial) Balance Sheet December 31, 2017
Current assets
Inventories
Finished goods	25320
Work in process	20020
Raw materials	34420	$76760