Question

Che 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 $53,000 48,400 97,400 23,100 28,000 27.100 143,150 25,760 32,700 Factory Insurance Factory Machinery Depreciation Factory Utilities Office Utilities Expense Sales Revenue Sales Discounts Plant Manager's Salary Factory Property Taxes Factory Repairs Raw Materials Purchases Cash $4,800 18,600 30,500 8,750 563,100 5,000 64,200 9.610 1,700 97,000 41.000

Answer 1

Solution: 1
	Schedule of Cost of Goods Manufactured
		Amount	Amount
	Direct Materials:
	Opening Raw materials	$               53,000
	Add: Purchases	$               97,000
	Total Raw Materials Available	$           1,50,000
	Closing Raw materials	$               48,400
	Cost of materials Used		$           1,01,600
	Direct Labor Cost		$           1,43,150
	Indirect Labor		$              25,760
	Factory Insurance		$                 4,800
	Factory Machinary Depreciation		$              18,600
	Factory Utilities		$              30,500
	Plant Manager Salary		$              64,200
	Factory Property Taxes		$                 9,610
	Factory Repairs		$                 1,700
	Total Manufacturing Cost		$           3,99,920
	Add: Beginning Work in Process		$              28,000
	Total		$           4,27,920
	Less: Ending Work-in-process		$              27,100
	Cost of goods manufactured		$           4,00,820
Solution: 2
	Income Statement
		Amount in $	Amount in $
	Sales Revenue	$           5,63,100
	Less: Sales Discount	$                 5,000
	Net Sales Revenue		$           5,58,100
	Less: Cost of Goods sold
	Opening Finished Goods	$               97,400
	Add: Cost of Goods Manufatured	$           4,00,820
	Total	$           4,98,220
	Less: Ending Finished Goods	$               23,100
	Cost of goods Sold		$           4,75,120
	Office Utilities Expenses		$                 8,750
	Net Income		$              74,230
Solution: 3
	Balance Sheet (Partial)
	Current Assets:
	Cash		$              41,000
	Account Receivable		$              32,700
	Inventory:
	Raw Material Inventory	$               48,400
	Finished Goods Inventory	$               23,100
	Work in progress inventory	$               27,100
	Total inventory		$              98,600
	Total Current Assets		$           1,72,300