Question

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020. Raw Materials Inventory 7/1/19 Raw Materials Inventory 6/30/20 Finished Goods Inventory 7/1/19 Finished Goods Inventory 6/30/20 Work in Process Inventory 7/1/19 Work in Process Inventory 6/30/20 Direct Labor Indirect Labor Accounts Receivable $49,900 45,000 96,100 28,500 22,700 29,200 145,050 27,360 34,100 Factory Insurance Factory Machinery Depreciation Factory Utilities Office Utilities Expense Sales Revenue Sales Discounts Plant Man er's Salary Factory Property Taxes Factory Repairs Raw Materials Purchases $4,800 17,100 30,500 9,550 556,800 4,500 65,800 9,910 1,500 98,800 37,200 Cash

Answer 1

Ans. 1	CLARKSON COMPANY
	COST   OF   GOODS   MANUFACTURED SCHEDULE
	For the Fiscal Year Ended June 30, 2020
	Particulars	Amount	Amount
	Beginning Work in process inventory		$22,700
	Direct materials :
	Beginning raw materials inventory	$49,900
	Add: Purchase of direct materials	$98,800
	Raw materials available	$148,700
	Less: Ending raw materials inventory	-$45,000
	Direct materials used (A)		$103,700
	Direct labor (B)		$145,050
	Manufacturing overhead applied:
	Indirect labor	$27,360
	Factory Insurance	$4,800
	Factory machinery depreciation	$17,100
	Factory utilities	$30,500
	Plant manager's salary	$65,800
	Factory property taxes	$9,910
	Factory repairs	$1,500
	Total manufacturing overhead ©		$156,970
	Total manufacturing costs (A+B+C)		$405,720
	Total cost of work in process		$428,420
	Less: Ending Work in process inventory		-$29,200
	Cost of goods manufactured		$399,220
Ans. 2	CLARKSON COMPANY
	Income Statement
	For Year Ended June 30, 2020
	Particulars	Amount	Amount
	Sales revenue	$556,800
	Less: Sales discounts	-$4,500
	Net sales revenue		$552,300
	Less: Cost of goods sold:
	Cost of Goods Manufactured	$399,220
	Add: Beginning finished goods inventory	$96,100
	Cost of goods available for sale	$495,320
	Less: Ending finished goods inventory	-$28,500
	Cost of goods sold		$466,820
	Gross profit		$85,480
	*Office utilities expense is used as Administrative expenses.
Ans. 3	CLARKSON COMPANY
	(Partial) Balance Sheet
	June 30, 2020
	Current assets:
	Cash (A)		$37,200
	Accounts receivable (B)		$34,100
	Inventories:
	Raw materials ending inventory	$45,000
	Work in process ending inventory	$29,200
	Finished goods ending inventory	$28,500
	Total inventroies ©		$102,700
	Total current assets (A+B+C)		$174,000