Question

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May:

1		Rainier Company	Yakima Company
2	Materials inventory, May 1	$281,120.00	$176,500.00
3	Materials inventory, May 31	(a)	177,500.00
4	Materials purchased	713,200.00	340,300.00
5	Cost of direct materials used in production	751,600.00	(a)
6	Direct labor	1,058,600.00	(b)
7	Factory overhead	328,000.00	179,200.00
8	Total manufacturing costs incurred in May	(b)	1,034,000.00
9	Total manufacturing costs	2,678,800.00	1,477,500.00
10	Work in process inventory, May 1	540,600.00	443,500.00
11	Work in process inventory, May 31	451,000.00	(c)
12	Cost of goods manufactured	(c)	1,028,000.00
13	Finished goods inventory, May 1	476,000.00	200,500.00
14	Finished goods inventory, May 31	495,600.00	(d)
15	Sales	4,143,000.00	1,670,000.00
16	Cost of goods sold	(d)	1,051,500.00
17	Gross profit	(e)	(e)
18	Operating expenses	538,000.00	(f)
19	Net income	(f)	380,900.00

	Required:
	a. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
	b. Prepare Yakima Company’s statement of cost of goods manufactured for May. For those boxes in which you must enter subtracted or negative numbers use a minus sign*
	c. Prepare Yakima Company’s income statement for May. Enter all amounts as positive numbers.* *Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Answer 1

Rainer Company Requirement (a) Yakima Company Requirement (a) Material Inventory May 1 Add : Material Purchased Less : Cost of materials used Material Inventory May 31 $ 443,500 $ 281,120 $ 713,200 $ (751,600 $ 242,720 Material Inventory May 1 Add : Material Purchased Less :Material Inventory May 31 Cost of materials used $ 176,500 $ 340,300 $ (177,500) $ 339,300 Requirement (b) Requirement (b) Requirement (b) Yakima Company Statement of cost of goods manufactured For the Month ended May 31 Work in process inventory May 1 Material Inventory May ay 1 $ 176,500 Add : Material Purchased $ 340,300 Cost of materials avalable for use $ 516,800 Less : Material Inventory May 31 $ (177,500) Cost of materials used in production $ 339,300 Add : Direct Labour $ 515,500 Add : Factory overhead $ 179,200 Total Manufacturing Costs incurred in may Total Manufacturing Costs Less: Work in Process Inventory May 31 Cost of goods manufactured Cost of materials used Add : Direct Labour Add : Factory overhead Total Manufacturing Costs incurred $ 751,600 $ 1,058,600 $ 328,000 $ 2,138,200 Total Manufacturing Costs incurred in may Less : Factory overhead Less : Cost of materials used Direct Labour $ 1,034,000 $ (179,200) $ (339,300) 515,500 may $ 1,034,000 $ 1,477,500 $ (449,500) $ 1,028,000 Requirement (C) Requirement (C) Total Manufacturing Costsincurred in may Add : Work in Process Inventory May 1 Less : Work in Process Inventory May 31 Cost of goods manufactured $ 2,138,200 $ 540,600 $ (451,000) $ 2,227,800 Total Manufacturing Costs Less : Cost of goods manufactured Work in Process Inventory May 31 $ 1,477,500 $ (1,028,000 $ 449,500 Requirement Requirement Requirement Yakima Company Income Statement For the Month Ended May 31 Sales $ 1,670,000 Cost of goods sold Fnished goods inventory, may 1 $ 200,500 Add: Cost of goods manufactured $1,028,000 Cost of fnished goods available for sale $ 1,228,500 Less : Finished goods inventory, may 31 $ (177,000) Cost of goods sold $ 1,051,500 Gross Profit $ 618,500 Less : Op Expense $ (237,600) Net Income $ 380,900 Cost of goods manufactured Add : Finished goods inventory, may 1 Less : Finished goods inventory, may 31 Cost of goods sold $ 2,227,800 $ 476,000 $ (495,600) $ 2,208,200 Fnished goods inventory, may 1 Add: Cost of goods manufactured Less : Cost of goods sold Finished goods inventory, may 31 $ 200,500 $ 1,028,000 $(1,051,500) $ 177,000 Requirement (e) Requirement (e) Sales Less : Cost of goods sold Gross Proft $ 4,143,000 $(2,208,200) $ 1,934,800 Sales Less : Cost of goods sold Gross Profit $ 1,670,000 $ (1,051,500) $ 618,500 Requirement (0) Requirement Gross Profit Less : OperatingExpense Net Income $ 1,934,800 $ (538,000) $ 1,396,800 Gross Proft Less : Net Income Operating Expense $ 618,500 $ (380, 900) 237,600