Question

eBook Calculator Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December. On Off Company Company Materials inventory, December 1 $71,790 $96,920 Materials inventory, December 31 (a) 109,520 Materials purchased 182,350 (a) Cost of direct materials used in production 192,400 (b) Direct labor 270,650 218,070 Factory overhead 83,990 108,550 Total manufacturing costs incurred in December (b) 627,070 Total manufacturing costs 684,880 860,650 Work in process inventory, December 1 137,840 233,580 Work in process inventory, December 31 116,300 (c) Cost of goods manufactured (c) 621,260 Finished goods inventory, December 1 121,330 108,550 Finished goods inventory, December 31 127,070 (d) Sales 1,058,180 969,200 Cost of goods sold (d) 627,070 Gross profit (e) (e) Operating expenses 137,840 (f) Net income (f) 215,160 Required: < 1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers. Letter On Company Off Company S $ b. s c. $ d. s $ $ e. s $ fi $

Answer 1

1.

Letter	On	Off
	Company	Company
a	$61,740	$2,87,850
b	$5,47,040	$3,00,450
c	$5,68,580	$2,39,390
d	$5,62,840	$1,02,740
e	$4,95,340	$3,42,130
f	$3,57,500	$1,26,970

2.

On Company
Statement of Cost of Goods Manufactured
For the Month Ended December 31
Work in Process Inventory, December 1			$1,37,840
Direct materials consumed:
Opening Stock of Raw Material	$71,790
Add: Additions/ Purchases	$1,82,350
	$2,54,140
Less: Closing stock of Raw Material	-$61,740
		$1,92,400
Direct employee (labour) cost		$2,70,650
Add: Factory Overhead		$83,990
Total Manufacturing costs incurred in December			$5,47,040
Total Manufacturing costs			$6,84,880
Less: Closing Work in Process			$1,16,300
Cost of goods manufactured (5+6-7)			$5,68,580

On Company
Income Statement
For the Month Ended December 31
Sales		$10,58,180
Cost of Goods Sold
Cost of Goods Manufactured	$5,68,580
Add: Finished goods Inventory, December 1	$1,21,330
	$6,89,910
Less: Finished goods Inventory, December 31	$1,27,070
Cost of Goods Sold		$5,62,840
Gross Profit		$4,95,340
Operating Expenses		$1,37,840
Net income		$3,57,500

Working Notes:

Particulars	On	Off
	Company	Company
Direct materials consumed:
Opening Stock of Raw Material , December 1	$71,790	$96,920
Add: Additions/ Purchases	$1,82,350	$2,87,850
Less: Closing stock of Raw Material , December 31	$61,740	$1,09,520
Cost of direct materials used in production	$1,92,400	$3,00,450
Add: Direct employee (labour) cost	$2,70,650	$2,18,070
Add: Factory Overhead	$83,990	$1,08,550
Total Manufacturing costs incurred in December	$5,47,040	$6,27,070
Add: Opening Work in Process , December 1	$1,37,840	$2,33,580
Total Manufacturing costs	$6,84,880	$8,60,650
Less: Closing Work in Process, December 31	$1,16,300	$2,39,390
Cost of Goods Manufactured	$5,68,580	$6,21,260
Add: Finished goods Inventory, December 1	$1,21,330	$1,08,550
Less: Finished goods Inventory, December 31	$1,27,070	$1,02,740
Cost of Goods Sold (15+16-17)	$5,62,840	$6,27,070
Sales	$10,58,180	$9,69,200
Less: Cost of Goods Sold	$5,62,840	$6,27,070
Gross Profit	$4,95,340	$3,42,130
Less: Operating Expenses	$1,37,840	$1,26,970
Net Income	$3,57,500	$2,15,160