Question

I need helo preparing the COGS statement and an income statement for this problem.

Yolo Windows, a manufacturer of windows for commercial buildings, reports the following account information for last year (all costs are in thousands of dollars). $ 82 111 1,630 Information on January 1 (Beginning): Direct materials inventory Work-in-process inventory Finished goods inventory Information for the year 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 on fact Sales revenue Information on December 31 (Ending): Direct materiale inventory Work-in-process inventory Finished goods inventory $ 3,690 12,300 8,200 11,720 766 935 2,950 670 1,550 280 45,900 $ 93 145 1,440 Required: 1. Prepare a cost of goods sold statement. 2. Prepare an income statement

Answer 1

Required 1: Cost of goods sold statement:

Beginning work-in-process inventory		$111
Direct materials:
Beginning raw material inventory	$82
(+) Material purchased	$8,200
Raw material available for use	$8,282
(-) Ending raw material inventory	($93)
Direct material used		$8,189
Direct labor		$12,300
Manufacturing overhead cost:
Factory and machine depreciation	$11,720
Factory supervision	$766
Factory utilities	$935
Indirect factory labor	$2,950
Indirect material and supplies	$670
Property taxes on factory	$280
Total manufacturing overhead		$17,321
Total manufacturing overhead incurred (17,321 + 12,300 + 8,189)		$37,810
Total manufacturing cost to account for (37,810 + 111)		$37,921
(-) Ending work-in-process		($145)
Cost of goods manufactured		$37,776
(+) Beginning finished goods inventory		$1,630
(-) Ending finished goods inventory		($1,440)
Cost of goods sold (37,776+1,630-1,440)		$37,966

Required 2: Income statement:

Sales revenue		$45,900
(-) Cost of goods sold		($37,966)
Gross profit		$7,934
Operating expenses:
Administrative cost	$3,690
Marketing cost	$1,550
Total operating expenses		($5,240)
Net income		$2,694