Question

Yolo Windows, a manufacturer of windows for commercial buildings, reports the following account information for last year (all costs are in thousands of dollars): Information on January 1 (Beginning): Direct materials inventory $ 88 Work-in-process inventory 117 Finished goods inventory 1,620 Information for the year: Administrative costs $ 3,650 Direct labor 12,450 Direct materials purchases 8,270 Factory and machine depreciation 11,550 Factory supervision 750 Factory utilities 958 Indirect factory labor 2,890 Indirect materials and supplies 679 Marketing costs 1,520 Property taxes on factory 274 Sales revenue 45,600 Information on December 31 (Ending): Direct materials inventory $ 96 Work-in-process inventory 130 Finished goods inventory 1,450

Answer 1

Yolo Windows Schedule of Cost of Goods Sold For the year ended December 31
Beginning work in process inventory		117
Direct materials used
Beginning direct materials	88
Add: Purchases	8,270
Cost of materials available for sale	8,358
Less: Ending direct materials	(96)	8,262
Direct labor		12,450
Manufacturing overhead
Factory and machine depreciation	11,550
Factory supervision	750
Factory utilities	958
Indirect labor	2,890
Property taxes	274
Indirect materials	679	17,101
Total Manufacturing Costs		37,813
Total Cost of Work in Process		37,930
Ending work in process inventory		(130)
Cost of Goods Manufactured		37,800
Add: Beginning finished goods inventory		1,620
Cost of Goods Available for Sale		39,420
Less: Ending finished goods inventory		(1,450)
Cost of Goods Sold		37,970

Income Statement For the year ended December 31
Sales Revenue		45,600
Cost of Goods Sold		37,970
Gross Profit		7,630
Selling and Administrative Expenses
Marketing costs	1,520
Administrative costs	3,650
Total Selling and Administrative Expenses		5,170
Net Operating Income		2,460