Question

Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, Dec. 31, 2016 Work in process inventory, Dec. 31, 2016 Finished goods inventory, Dec. 31, 2016 Raw materials purchases Direct labor Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, Dec. 31, 2017 Work in process inventory, Dec. 31, 2017 Finished goods inventory, Dec. 31, 2017 $1,040,000 38,000 54,400 63,300 192 1900 240,000 20,200 45,000 5,250 51,000 91,000 126,000 44,500 47,700 71,200

Answer 1

$ 10,40,000 $ $ -5,46,650 4,93,350 Statement of Cost of goods Sold Opening - Raw materials $ Add: Raw materials purchased $ Raw materials available for use $ Less: Closing- Raw materials | $ Raw materials Used A S Direct Labour B $ Manufacturing Overhead: Factory Computer Supplies Used $ Indirect Labor Repairs- Factory Equipment $ Rent Cost of Factory Equipment $ Total manfacturing Overhead C $ Total manfacturing Cost( A+B+C) $ Add: Opening Work in process Inventory | $ Less:Closing Work in process Inventory Cost of Goods Manufactured $ Income Statement 38,000 Sales 1,92,900 Cost of Goods Sold: 2,30,900 Opening Finished Goods $ 63,300 -44,500 ||Add: Cost of Goods Manufactured $ 5.54.550 1,86,400 Cost of Goods avaliable for sale $ 6,17,850 2,40,000 Less: Closing Finished Goods $ -71,200 Gross Profit 20,200 Operating Expenses 45,000 Advertising Expenses $ 91,000 5,250 General and administrative Expenses $ 1,26,000 51,000 Total Operating Expenses 1,21,450 Operating Income 5,47,850 54,400 -47,700 5,54,550 $ $ -2,17,000 2,76,350