Question

The Zoe Corporation has the following information for the month of March. Prepare the following schedules:
1) schedule of cost of goods manufactured
2) an income statement for the month ended March 31
3) the inventory section only of the balance sheet
Purchases $92,000
Materials inventory, March 1 6,000
Materials inventory, March 31 8,000
Direct labor 25,000
Factory overhead 37,000
Work in process, March 1 22,000
Work in process, March 31 18,500
Finished goods inventory, March 1 21,000
Finished goods inventory, March 31 25,000
Sales 257,000
Sales and administrative expenses 79,000

Answer 1

a. Schedule of cost of goods manufactured:

Direct materials:
Beginning Inventory	6,000
Purchases of direct materials	92,000
Cost of direct materials available for use	98,000
Ending inventory	8,000
Direct materials used		90,000
Direct manufacturing labor		25,000
Manufacturing overhead costs		37,000
Manufacturing costs incurred		152,000
Beginning work in process inventory		22,000
Total manufacturing costs to account for		174,000
Ending work in process inventory		18,500
Cost of goods manufactured		155,500

b. income statement

Revenues		257,000
Costs of goods sold:
Beginning finished goods inventory	21,000
Cost of goods manufactured	155,500
Cost of goods available for sale	176,500
Ending finished goods inventory	25,000
Cost of gods sold		151,500
Gross Profit		105,500
Operating costs:
Sales and Administrative expenses	79,000
Total operating costs		79,000
Operating Income		26,500

c. Inventory section of balance sheet:

Inventory:
Raw Materials	8,000
Work in process	18,500
Finished Goods	25,000
Total Inventory	51,500

Answer 2

a. Schedule of cost of goods manufactured:

Direct materials:
Beginning Inventory	6,000
Purchases of direct materials	92,000
Cost of direct materials available for use	98,000
Ending inventory	8,000
Direct materials used		90,000
Direct manufacturing labor		25,000
Manufacturing overhead costs		37,000
Manufacturing costs incurred		152,000
Beginning work in process inventory		22,000
Total manufacturing costs to account for		174,000
Ending work in process inventory		18,500
Cost of goods manufactured		155,500

b. income statement

Revenues		257,000
Costs of goods sold:
Beginning finished goods inventory	21,000
Cost of goods manufactured	155,500
Cost of goods available for sale	176,500
Ending finished goods inventory	25,000
Cost of gods sold		151,500
Gross Profit		105,500
Operating costs:
Sales and Administrative expenses	79,000
Total operating costs		79,000
Operating Income		26,500

c. Inventory section of balance sheet:

Inventory:
Raw Materials	8,000
Work in process	18,500
Finished Goods	25,000
Total Inventory	51,500