Required 1: Cost of goods manufactured:
Direct materials: | ||
Raw material inventory, June 1 | $20,100 | |
(+) Purchases of raw material | $242,000 | |
Raw material available for use | $262,100 | |
(-) Raw material inventory, June 30 | ($50,950) | |
Raw material used in production | $211,150 | |
Direct labor | $106,700 | |
Manufacturing overhead: | ||
Rent on facilities (51,000 * 85%) | $43,350 | |
Insurance (11,100 * 90%) | $9,990 | |
Utilities (63,800 * 80%) | $51,040 | |
Indirect labor | $127,800 | |
Maintenance factory | $9,100 | |
Depreciation, factory equipment | $15,200 | |
Total overhead cost | $256,480 | |
Total manufacturing cost | $574,330 | |
(+) WIP inventory, June 1 | $78,650 | |
$652,980 | ||
(-) WIP inventory, June 30 | ($97,850) | |
Cost of goods manufactured | $555,130 |
Required 2: Income statement
Sales | $742,500 | |
(-) Cost of goods sold: | ||
Finished goods inventory, June 1 | $23,320 | |
(+) Cost of goods manufactured | $555,130 | |
Goods available for sale | $578,450 | |
(-) Finished goods inventory, June 30 | ($72,270) | ($506,180) |
Gross margin | $236,320 | |
(-) Selling and administrative expenses: | ||
Selling and administrative salaries | $43,400 | |
Rent on facilities (51,000 * 15%) | $7,650 | |
Insurance (11,100 * 10%) | $1,110 | |
Utilities (63,800 * 20%) | $12,760 | |
Depreciation, sales equipment | $12,650 | |
Advertising | $94,600 | ($172,170) |
Operating Income | $64,150 |
Veekay Company was organized on November 1 of the previous year. After seven months of start-up...
Veekay Company was organized on November 1 of the previous year. After seven months of start-up losses, management had expected to earn a profit during June, the most recent month. Management was disappointed, however, when the income statement for June also showed a loss. June's income statement follows: VEEKAY COMPANY Income Statement For the Month Ended June 30 $ 810,000 Sales Less operating expenses: Selling and administrative salaries 47,000 60,000 269,000 12,000 14,000 Rent on facilities Purchases of raw materials...
Veekay Company was organized on November 1 of the previous year. After seven months of start-up losses, management had expected to earn a profit during June, the most recent month. Management was disappointed, however, when the income statement for June also showed a loss. June’s income statement follows: VEEKAY COMPANY Income Statement For the Month Ended June 30 Sales $ 675,000 Less operating expenses: Selling and administrative salaries $ 39,800 Rent on facilities 42,000 Purchases of raw materials 215,000 Insurance...
Veekay Company was organized on November 1 of the previous year. After seven months of start-up losses, management had expected to earn a profit during June, the most recent month. Management was disappointed, however, when the income statement for June also showed a loss. June’s income statement follows: VEEKAY COMPANY Income Statement For the Month Ended June 30 Sales $ 667,500 Less operating expenses: Selling and administrative salaries $ 39,400 Rent on facilities 41,000 Purchases of raw materials 212,000 Insurance...
eekay Company was organized on November 1 of the previous year. After seven months of start-up losses, management had expected to earn a profit during June, the most recent month. Management was disappointed, however, when the income statement for June also showed a loss. June’s income statement follows: VEEKAY COMPANY Income Statement For the Month Ended June 30 Sales $ 667,500 Less operating expenses: Selling and administrative salaries $ 39,400 Rent on facilities 41,000 Purchases of raw materials 212,000 Insurance...
Wade Company was organized on November 1 of the previous year. After seven months of start-up losses, management had expected to earn a profit during June, the most recent month. Management was disappointed, however, when the income statement for June also showed a loss. June’s income statement follows: Wade Company Income Statement For the Month Ended June 30 Sales $600,000 Less-operating expenses Selling and administrative salaries $ 35,000 Rent on facilities 40,000 Purchases of raw materials 190,000 Insurance ...
Wade Company was organized on November 1 of the previous year. After seven months of start-up losses, management had expected to earn a profit during June, the most recent month. Management was disappointed, however, when the income statement for June also showed a loss. June’s income statement follows: Wade Company Income Statement For the Month Ended June 30 Sales $600,000 Less-operating expenses Selling and administrative salaries $ 35,000 Rent on facilities 40,000 Purchases of raw materials 190,000...
PLEASE COMPLETE THE INCOME STATEMENT & SCHEDULE OF COST OF GOODS MANUFACTURES [SHOW YOUR WORK] Veekay Company was organized on November 1 of the previous year. After seven months of start-up losses, management had expected to earn a profit during June, the most recent month. Management was disappointed, however, when the income statement for June also showed a loss. June’s income statement follows: VEEKAY COMPANY Income Statement For the Month Ended June 30 Sales $ 757,500 Less operating expenses: Selling...
1. As one step in gathering data for a recommendation to the president, prepare a schedule of cost of goods manufactured for June. eekay Company was organlzed on November 1 of the prevlous year. After seven months of start-up losses, management had expected to earn a profit during June, the most recent month. Management was disappolnted, however, when the Income statement or June also showed a loss. June's Income statement follows: VEEKAY COMPANY Incone Statenent For the Month Ended June...
Swift Company was organized on March 1 of the current year. After five months of startup losses management had expected to earn a profit during August, the most recent month. Management was disappointed, however, when the income statement for August also showed a loss. August's income statement follows SWIFT COMPANY Income Statement For the Month Ended August 31 Sales Less: Operating expenses $ 460,000 Indirect labour cost Utilities Direct labour cost Depreciation, factory equipment Raw materials purchased Depreciation, sales equipment...
Swanson Company was organized on March 1 of the current year. After five months of start-up losses, management had expected to earn a profit during August, the most recent month. Management was disappointed, however, when the income statement for August also showed a loss. Augusts' income statement follows: Swanson Company Income Statement For the Month Ended August 31 $831,000 Sales.. Less operating expenses: Indirect labor cost.............. Utilities. Direct labor cost ........ Depreciation, factory equipment Raw materials purchased. Depreciation, sales equipment...