Question

Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases Direct labor Factory supplies used (indirect materials) Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, ending Work in process inventory, ending Finished goods inventory, ending $ 1,115,000 36,000 51,600 67,500 158,200 235,000 22, 200 45,000 5,250 57,000 90,000 141,000 48,300 42,400 74,500

Answer 1

145900 235000 Delray Mfg Cost of goods Manufactured Schedule For the Current year December 31, Year 1 Direct Materials Raw material inventory Beginning 36000 Raw material purchased 158200 Total raw materials available for use 194200 Less: Raw material inventory ending 48300 Direct Materials used Direct labor Factory overhead: Facory computer supplies used 22200 Indirect labor 45000 Repairs - Factory equipment 5250 Rent cost of factory building 57000 Total factory over head Total manufacturing costs Add: Work in process, Beginning Total cost of work in process Less: Work in process, Ending Cost of goods Manufactured 129450 510350 516001 561950 42400 519550

DELRAY MFG. Income statement For the year Ended December 31, Year 1 Sales Cost of goods sold Finished goods inventory, Beginning 67500 Add: Cost of goods manufactured 519550 1115000 587050 74500 512550 Cost of goods available for sale Less: Finished goods inventory, Ending Cost of goods sold Gross profit Operating expenses: Advertising expenses General and administrative expenses 602450 90000 141000 Total operating expenses Operating Income 231000 371450)