Question

Prepare an income statement for Delray Mfg. (a manufacturer). DELRAY MFG. Income Statement For Year Ended December 31, 2017 Cost of goods sold Cost of goods available for sale Cost of goods sold Operating expenses Total operating expenses

Answer 1

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Answer 1
Cost of goods manufactured	Garcon	Pepper
Beginning Raw material inventory	8,700.00	10,350.00
Raw material Purchases	38,000.00	64,500.00
Total Raw material available for use	46,700.00	74,850.00
Less: Ending Raw material inventory	7,800.00	10,000.00
Direct materials used	38,900.00	64,850.00
Direct Labor	23,000.00	38,200.00
Manufacturing Overhead
Rental cost on factory equipment	34,750.00	22,300.00
Factory utilities	14,100.00	14,500.00
Factory supplies used	12,400.00	5,900.00
Indirect Labor	2,050.00	8,680.00
Repairs- Factory equipment	5,780.00	2,550.00
Total Manufacturing Overhead	69,080.00	53,930.00
Total Manufacturing costs	130,980.00	156,980.00
Beginning Work in process inventory	16,400.00	22,650.00
Total cost of work in process	147,380.00	179,630.00
Less: Ending Work in process inventory	25,300.00	21,200.00
Cost of goods manufactured	122,080.00	158,430.00
Answer 2
Cost of goods sold	Garcon	Pepper
Beginning Finished goods inventory	12,200.00	19,450.00
Cost of goods manufactured	122,080.00	158,430.00
Cost of goods available for sale	134,280.00	177,880.00
Less: Finished goods inventory, ending	20,000.00	13,700.00
Cost of goods sold	114,280.00	164,180.00
Answer 1
Income Statement	Garcon	Pepper
Sales Revenues
Sales Revenues	222,030.00	322,510.00
Net Sales	222,030.00	322,510.00
Less: Cost of goods sold	114,280.00	164,180.00
Gross Profit	107,750.00	158,330.00
Less: Operating Expenses
General and administrative	21,000.00	57,500.00
Selling expense	63,600.00	50,500.00
Total Operating Expenses	84,600.00	108,000.00
Net Income	23,150.00	50,330.00
Answer 2
Current Assets	Garcon	Pepper
Cash	26,000.00	24,200.00
Accounts Receivable	14,600.00	21,950.00
Inventories
Finished goods	20,000.00	13,700.00
Work in process	25,300.00	21,200.00
Raw materials	7,800.00	10,000.00
Total Current Assets	93,700.00	91,050.00