Question

Tools 2 Koufax Materials Corporation produces plastic products for home appliances and electronics. The financial department has produced the following information for the year ended December 31 Administrative salaries Depreciation on the administrative building Depreciation on the manufacturing plant Direct labor Direct materials inventory. January 1 Direct materiale inventory. December 31 Direct materials purchased during the year Distribution costa Finished goods inventory, January 1 Finished goods inventory. December 31 Indirect labor Insurance con manufacturing plant) Legal fees Maintenance on the manufacturing plant) Manufacturing plant utiities Marketing costs Other manufacturing plant costs Sales revenue Taxes (on manufacturing plant and property) Work-in-process inventory, January 1 Work-in-process inventory, December 31 $ 2,630,000 1,147,000 1.755.000 4.697.500 1,074,200 1,240.000 8,961,000 662,000 1,647,000 1,374,500 547,000 58,200 501,300 220,400 789, 100 754,250 635,880 22,659,920 220,600 408,250 401,700 Required: a. Prepare a cost of goods manufactured and sold statement. b. Prepare an income statement. Complete this question by entering your answers in the tabs below. COGM and OGS Stints Income Stmt -pare a cost of goods manufactured and sold statement.

Answer 1

COST OF GOOD MANUFACTURED AND SOLD

	AMOUNT($)	AMOUNT($)
DIRECT MATERIAL
BEGINNING DIRECT MATERIAL INVENTORY	1074200
PURCHASE DIRECT MATERAIL INVENTORY	8961000
CLOSING DIRECT MATERAIL INVENTORY	(1240000)
DIRECT MATERAIL COST		8795200
DIRECT LABOUR		4697500
MANUFACTURING OVERHEAD
DEPRECIATION ON THE MANUFACTURING PLANT	1755000
INDIRECT LABOUR	547000
INSURANCE(ON MANUFACTURING PLANT)	58200
MAINTENANCE(ON MANUFACTURING PLANT)	220400
MANUFACTURING PLANT UTILITIES	789100
OTHER MANUFACTURING PLANT COSTS	635880
TAXES(ON MANUFACTURING PLANT AND PROPERTY)	220600
MANUFACTURING OVERHEAD COST		4226180
BEGINNING WIP		408250
CLOSING WIP		(401700)
COST OF GOOD MANUFACTURED		17725430
BEGINNING FINISHED GOOD INVENTORY		1647000
CLOSING FINSHED GOOD INVENTORY		(1374500)
COST OF GOOD SOLD		17997930

INCOME STATEMENT

	AMOUNT($)	AMOUNT($)
SALES REVENUE		22659920
COST OF GOOD SOLD		(17997930)
GROSS PROFIT		4661990
OPERATING EXPENSE
ADMINISTRATIVE SALARIES	2630000
DEPRECIATION ON ADMINISTRATIVE BUILDING	1147000
DISTRIBUTION COST	662000
MARKETING COST	754250
TOTAL OPERATING EXPENSE		(5193250)
OPERATING PROFIT/LOSS		(531260)
NON OPERATING(LEGAL FEE)		(501300)
NET PROFIT/NET LOSS		(1032560)