Question

1,2,3 saved Help Sa Yolo Windows, a manufacturer of windows for commercial buildings, reports the following account information for last year (all costs are in thousands of dollars) 114 1.050 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 suplirvision Factory utilities Indirect factory labor Indirect materials and supplies Marketing costs Property taxes on factory Sales revenue Information on December 31 (Ending): Direct materials inventory Work-in-process inventory Finished goods inventory $3,020 12,450 3,240 11,540 760 964 .890 678 1,550 271 45,400 $ 96 139 1,480 Required: 1. Prepare a cost of goods sold statement. 2. Prepare an income statement. < Prey 6 of 11 Next >

Answer 1

YOLO WINDOWS
Statement of Cost of Goods Sold
For the Year Ended December 31
($000)
Beginning work in process, Jan. 1			$114
Manufacturing Costs:
Direct Materials:
Beginning inventory, Jan. 1	$84
Add: Materials purchases	$8,240
Direct materials available	$8,324
Less: Ending inventory, Dec. 31	($96)
Direct Materials used		$8,228
Direct labor		$12,450
Manufacturing overhead:
Factory and machine depreciation	$11,540
Factory supervision	$766
Factory utilities	$964
Indirect factory labor	$2,890
Indirect materials and supplies	$678
Property taxes on factory	$271
Total manufacturing overhead		$17,109
Total manufacturing costs                        [$8,228 + $12,450 + $17,109]			$37,787
Total Cost of work in Process during the year           [$114 + $37,787]			$37,901
Less: Ending work in process, Dec. 31			($139)
Cost of Goods Manufactured during the year			$37,762
Beginning finished goods, Jan. 1			$1,650
Finished goods inventory available for use                     [$37,762 + $1,650]			$39,412
Less: Ending finished goods inventory, Dec. 31			($1,480)
Cost of Goods Sold			$37,932

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YOLO WINDOWS
Income Statment
For the Year Ended December 31
($000)
Sales revenue		$45,400
Less: Cost of goods sold   [Refer statement of cost of goods sold]		($37,932)
Gross margin		$7,468
Administrative cost	$3,620
Marketing costs	$1,550
Total marketing and Administrative costs    [$3,620 + $1,550]		$5,170
Operating profit                                            [$7,468 - $5,170]		$2,298