Question

Yolo Windows, a manufacturer of windows for commercial buildings, reports the follo are in thousands of dollars). 81 113 1,640 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 supervision 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 $ 3,600 12,050 8,250 11,530 740 962 2,930 681 1,540 292 45,800 $ 94 125 1,500 Required: 1. Prepare a cost of goods sold statement. 2. Prepare an income statement.

Answer 1

$ $ 113 $ $ 8,237 12,050 YOLO WINDOWS Statement of Cost of Goods Sold For the Year Ended December 31 ($000) Beginning work-in-process, January 1 Manufacturing costs: Direct materials: Beginning inventory, January 1 $ 81 Add: Material purchases $ 8,250 Direct materials available $ 8,331 Less: Ending inventory, December 31 $ 94 Direct materials used Direct labor Manufacturing overhead: Factory and machine depreciation $ 11,530 Factory supervision 740 Factory utilities $ 962 Indirect factory labor $ 2,930 Indirect materials and supplies $ 681 Property taxes on factory $ 292 Total manufacturing overhead Total manufacturing costs Total cost of work-in-process during the year Less: Ending work-in process, December 31 Cost of goods manufactured during the year Beginning finished goods, January 1 Finished goods inventory available for sale Less: Ending finished goods inventory, December 31 Cost of goods sold $ 17,135 $ $ $ $ $ $ $ $ 37,422 37,535 125 37,410 1,640 39,050 1,500 37,550

YOLO WINDOWS Income Statement For the Year Ended December 31 ($000) Sales revenue Less: Cost of goods sold Gross margin Administrative costs $ Marketing costs $ Total marketing and administrative costs Operating profit $ $ $ 45,800 37,550 8,250 3,600 1,540 $ $ 5,140 3,110