Question

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020. $5,500 Raw Materials Inventory 7/1/19 Raw Materials Inventory 6/30/20 Finished Goods Inventory 7/1/19 Finished Goods Inventory 6/30/20 Work in Process Inventory 7/1/19 Work in Process Inventory 6/30/20 Direct Labor Indirect Labor Accounts Receivable $50,400 39,900 99,600 20,600 27,300 20,100 148,350 25,660 28,000 18,100 30,100 8,650 562,100 Factory Insurance Factory Machinery Depreciation Factory Utilities Office Utilities Expense Sales Revenue Sales Discounts Plant Manager's Salary Factory Property Taxes Factory Repairs Raw Materials Purchases Cash 5.300 64,900 9.610 2,200 98,700 38,200 Part 1 Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.) CLARKSON COMPANY Cost of Goods Manufactured Schedule

COst of good manufacture schedule

Prepare an income statement through gross profit.

Prepare the current assets section of the balance sheet at June 30, 2020.

Answer 1

CLARKSON COMPANY
Schedule of cost of goods manufactured
For the year ended June 30 2020
Direct materials
Raw materials inventory, 7/1/2019	$         50,400
Raw materials purchases	$         98,700
Raw materials available for use	$      1,49,100
Less: Raw materials inventory, 6/30/2020	$       -39,900
Raw material used		$ 1,09,200
Direct labour		$ 1,48,350
Manufacturing over head:
Plant managers salary	$         64,900
Factory utilities	$         30,100
Indirect labour	$         25,660
Factory machinery depreciation	$         18,100
Factory property taxes	$           9,610
Factory insurance	$           5,500
Factory repairs	$           2,200
Total manufacturing overhead		$ 1,56,070
Total manufacturing cost		$ 4,13,620
Working progress beginning		$     27,300
less: working progress ending		$    -20,100
Cost of goods manufactured		$ 4,20,820
Income Statement (Partial)
For the year ended June 30 2020
Sales	$      5,62,100
Less: Sales discount	$         -5,300
Net sales		$ 5,56,800
Cost of goods sold
Cost of goods manufactured	$      4,20,820
Finished Goods inventory Beginning	$         99,600
Goods available for sales	$      5,20,420
Less: Finished Goods inventory, ending	$       -20,600
Cost of goods sold		$ 4,99,820
Gross profit from sales		$     56,980
Partial Balance sheet
For the year ended June 30 2020
Current Asset
Cash		$     38,200
Account receivable		$     28,000
Inventory
Finished goods	$         20,600
Work in progress	$         20,100
Raw materials	$         39,900	$     80,600
Total current asset		$ 1,46,800