Question

We Calibri (Body) 11 ♥ A A <a » al Paste BIU Recover Unsaved Workbooks. We were able to save changes to one or more files. Do you want to rece B9 • * fx 140000 А 5 6 The following information is for the Central Manufacturing Co. for 2019 7 8 9 Selling expenses $ 140,000 10 Raw material inventory, Jan 1 90,000 11 Raw material inventory, Dec 31 60,000 12 Factory utilities 36,000 13 Direct labor 150,000 14 Factory depreciation 162,000 15 Purchases of raw materials 750,000 16 Sales 2,500,000 17 Factory insurance 40,000 18 Factory supplies 15,000 19 Administrative expenses 270,000 20 Indirect factory labor 300,000 21 Factory maintenance 87,000 22 Work in process inventory, Jan 1 180,000 23 Work in process inventory, Dec 31 100,000 24 Finished goods inventory, Jan 1 260,000 25 Finished goods inventory, Dec 31 210,000 26 27 1. Prepare a schedule of cost of goods manufactured 28 2. Compute the cost of goods sold 29 3. Prepare the income statement for 2019 30 31 32 33 esc F1

Answer 1

Solution 1:
Central Manufacturing Company
Schedule of cost of goods manufactured
Particulars	Details	Amount
Direct Material:
Beginning inventory	$90,000.00
Raw material purchases	$750,000.00
Total Raw material available	$840,000.00
Ending inventory	$60,000.00
Raw material used in production		$780,000.00
Direct Labor		$150,000.00
Manufacturing overhead:
Factory Utilities	$36,000.00
Factory Depreciation	$162,000.00
Factory Insurance	$40,000.00
Factory Supplies	$15,000.00
Indirect factory labor	$300,000.00
Factory maintenance	$87,000.00
Total manufacturing overhead		$640,000.00
Total manufacturing costs		$1,570,000.00
Add: Opening WIP		$180,000.00
Total cost of work in process		$1,750,000.00
Less: ending WIP		$100,000.00
Cost of goods manufactured		$1,650,000.00

Solution 2:
Central Manufacturing Company
Schedule of cost of goods Sold
Particulars	Amount
Beginning finished goods inventory	$260,000.00
Add: Cost of goods manufactured	$1,650,000.00
Cost of goods available for sale	$1,910,000.00
Less: ending finished goods inventory	$210,000.00
Cost of goods sold	$1,700,000.00

Solution 3:
Central Manufacturing Company
Income Statement
Particulars	Details	Amount
Sales		$2,500,000.00
Cost of goods sold		$1,700,000.00
Gross Profit		$800,000.00
Selling and administrative expenses:
Selling expenses	$140,000.00
Administrative Expenses	$270,000.00	$410,000.00
Net Income		$390,000.00