Question

PROBLEM TWO: 25 POINTS Information for York Plastics as of December 31 follows. Prepare (a) the company's Schedule of Cost of Goods Manufactured for the year ended December 31 and (b) prepare the company's Cost of Goods Sold section of the Income Statement. $135,000 Administrative salaries expense 62,400 Depreciation expense - Factory equipment. Depreciation expense - Office 24,800 Advertising 22,350 Factory supplies 12,000 Income taxes 91,500 35,000 Indirect 24,000 14,000 Factory

Answer 1

Sschedule of Cost of Goods Manufactured
Beginning inventory of WIP					33780
Current cost of Manufacturing:
Beginning inventory of RMm			32000
Add: Purchases			325000
Total c ost of RM available			357000
Less: Ending inventory of RM			28000
Direct material used				329000
Direct labor				368000
Manufacturing Overheads:
Depreciation-Equipment			62400
factory Supplies			12000
Indirectt labor			35000
Indirect material			24000
factory utilities			14000
Manufacturing Overheads:				147400
Total cost of manufacturing incurred					844400
Total cost of WIP					878180
Less: Ending inventory of WIP					37460
Cost Of Goods manufactured					840720
Schedule of Cost of Goods sold:
Beginning invntory of FG				56970
Add: Cost of Goods Manufactured				840720
Total cost of goods available for sale				897690
Less: Ending inventory of FG				62000
Cost of goods sold				835690