Question

Yolo Windows, a manufacturer of windows for commercial buildings, reports the following account information for last year (all costs are in thousands of dollars). $ 80 114 1,610 Information on January 1 (Beginning): Direct materials inventory Work-in-process inventory Finished goods inventory Information for the years Administrative costs Direct labor Direct materials purchases Factory and machine depreciation Factory supervision Factory utilities Indirect factory labor Indirect materials and supplies Marketing costs Property taxes on factory Sales revenue Information on December 31 (inding) Direct naterials inventory Work-in-process inventory Finished goods inventory $ 3,620 12,050 8,280 11,620 737 939 2,880 686 1,540 296 45,500 $ 100 140 1,420 Required: 1. Prepare a cost of goods sold statement. 2. Prepare an income statement

Answer 1

1.

Schedule of Cost of Goods Manufactured
Direct materials inventory , January 1	80
Add:Direct materials purchases	8,280
Raw Material available for use	8,360
Less:Direct materials inventory , December 31	-100
Raw material used		8,260
Direct labor		12,050
Manufacturing Overheads:
Depreciation expense- Factory and machine	11,620
Factory supervision	737
Factory utilities	939
Indirect factory labor	2,880
Factory materials and supplies	686
Property taxes on factory	296
Total Manufacturing Overheads		17,158
Total Manufacturing Cost		37,468
Add :Work in process inventory, January 1		114
Less: Work in process inventory, December 31		-140
Cost of goods manufactured		$37,442
Add: Finished goods inventory, January 1		1,610
Less: Finished goods inventory, March 31		-1,420
Cost of goods sold		$37,632

2.

Income Statement
Sales		45,500
Cost of goods sold		-37,632
Gross profit		7,868
Expenses:
Administrative costs	3,620
Marketing costs	1,540
Total expenses		-5,160
Net Income		$2,708

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