Question

Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, Dec. 31, 2016 Work in process inventory, Dec. 31, 2016 Finished goods inventory, Dec. 31, 2016 Raw materials purchases Direct labor Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, Dec. 31, 2017 Work in process inventory, Dec. 31, 2017 Finished goods inventory, Dec. 31, 2017 $ 1,050,000 44,000 51,600 64,500 177,700 225,000 18,300 42,000 5,250 58,000 100,000 132,000 46,900 46,500 69,100 Prepare an income statement for Delray Mfg. (a manufacturer)

Answer 1

DELRAY MFG. Income Statement for Year Ended December 31, 2017 $ 1,050,000 Sales COAT of goods sold finished goods inventory, Dec 31, 2016 cost of goods manufactured $ 64,500 & 528,450 2017 $ 523,850 Cast of goods available for sale & 592,950 Less: Finished goods inventory, Dec 31, $ 69, 100 Cost of goods sold. Gross Profit operating expenses Advertising expenses $ 100,000 General and administrative expenses $ 132,000 $ 526,150 Total operating expenses Operating income $ 232,000 $ 294, 150

Calculation : Schedule of cost of Goods manufactured DELRAY MEG. for Year Ended Becember 31, 2017 & 177,700 Direet materials Raw materials inventory, Dec 31, 2016 $ 44,000 Add : Raw materials purchases Raw materials available for use & 221,700 hess: Raw materuals thuentory, Dec. 31, 2017 46,900 Direct materials used Direct labor $ 174,800 $ 225,000 factory overhead: factory computer supplies used & 18,300 Indirect labor $ 42,000 Repairs factory equipment $ 5250 Rent cost of factory building & 58,000 2016 Total factory overhead costs Total manufacturing costs Add: work in process inventory, Dec 31, Total cost of work in process Less: work in process inventory, Dec 31, 2017 Cost of goods mantelfactured & 123,550 $ 523,350 & 51,600 $ 574,950 $ 46,500 $ 528,450