Question

Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December. Off On Company Company Materials inventory, December 1 $89,070 $116,680 131,850 Materials inventory, December 31 (a) 226,240 (a) Materials purchased Cost of direct materials used in production 238,710 (b) Direct labor 335,790 262,530 Factory overhead 104,210 130,680 Total manufacturing costs incurred in December (b) 754,920 849,720 1,036,120 171,010 281,200 Total manufacturing costs Work in process inventory, December 1 Work in process inventory, December 31 Cost of goods manufactured 144,290 (c) 747,920 150,530 130,680 Finished goods inventory, December 1 Finished goods inventory, December 31 157,650 (d) Sales 1,312,890 1,166,800 Cost of goods sold (d) 754,920 Gross profit (e) (e) Operating expenses 171,010 (6) Net income () 259,030 Required:

Answer 1

	On Company	Off Company
a.	$                      76,600	$                    376,880
b.	$                    678,710	$                    361,710
c,	$                    705,430	$                    288,200
d.	$                    698,310	$                    123,680
e.	$                    614,580	$                    411,880
f.	$                    443,570	$                    152,850

ON Company
Statement of cost of goods manufactured
For the month ended December 31
Work in process inventory,December 1			$ 171,010
Direct Materials:
Materials Inventory, Dec 1	$   89,070
Add: Material purchased	$ 226,240
Cost of Direct material available for use	$ 315,310
Less: Materials Inventory, Dec 31	$   76,600
Direct material used		$    238,710
Direct Labor		$    335,790
Manufactuing overhead incurred		$    104,210
Total Manufacturing cost incurred during the period			$ 678,710
Total Manufacturing costs			$ 849,720
Less: Work in process inventory,December 31			$ 144,290
Cost of goods manufactured			$ 705,430
ON Company
Income Statement
For the month ended December 31
Sales Revenue		$ 1,312,890
Cost of goods sold:
Beginning Finished goods	$ 150,530
Cost of goods manufactured	$ 705,430
Cost of goods available for sale	$ 855,960
Less: Ending Finished goods	$ 157,650
Cost of goods sold		$    698,310
Gross Margin		$    614,580
Less: Operating expense		$    171,010
Operating Income		$    443,570

89070 281200 ON Company Statement of cost of goods manufactured For the month ended December 31 Work in process inventory, December 1 Direct Materials: Materials Inventory, Dec 1 89070 Add: Material purchased 226240 Cost of Direct material available for use =18+19 Less: Materials Inventory, Dec 31 76600 Direct material used =110-111 Direct Labor 335790 Manufactuing overhead incurred 104210 Total Manufacturing cost incurred during the period Total Manufacturing costs Less: Work in process inventory, December 31 Cost of goods manufactured OFF Company Statement of cost of goods manufactured For the month ended December 31 Work in process inventory,December 1 Direct Materials: Materials Inventory, Dec 1 116680 Add: Material purchased 376880 Cost of Direct material available for use =N8+N9 Less: Materials Inventory, Dec 31 131850 Direct material used =N10-N11 Direct Labor 262530 Manufactuing overhead incurred 130680 Total Manufacturing cost incurred during the period Total Manufacturing costs Less: Work in process inventory,December 31 Cost of goods manufactured =J12+J13+J14 =K6+K15 =K98-16 EK 6-K17 =O12+013+014 =P6+P15 288200 =P16-P17 1166800 ON Company Income Statement For the month ended December 31 Sales Revenue 1312890 Cost of goods sold: Beginning Finished goods 150530 Cost of goods manufactured =K18 Cost of goods available for sale =126+127 Less: Ending Finished goods 157650 Cost of goods sold =128-129 Gross Margin |=J24-130 Less: Operating expense 171010 Operating Income =131-132 OFF Company Income Statement For the month ended December 31 Sales Revenue Cost of goods sold: Beginning Finished goods 130680 EM18 =P18 Cost of goods available for sale =N26+N27 Less: Ending Finished goo 123680 Cost of goods sold Gross Margin Less: Operating expense Operating Income =N28-N29 =O24-030 152850 259030

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