Question

Hoth Company is a brand new company that started operations on December 1, 2019. Hoth manufactures cold weather clothing. At the end of December, 2019, the accountant for Hoth compiled the following information. Item Amount Administrative Expense $23,000 Direct Labor $9,000 Ending Finished Goods $13,000 Ending Raw Materials $24,000 Ending Work-in-Process $10,000 Manufacturing Overhead $10,000 Raw Materials Purchases $58,000 Sales Revenue $140,000 Selling Expense $22,000 Do not enter dollar signs or commas in the input boxes. Do not use the negative sign, a) Prepare a schedule of cost of goods manufactured for December

Answer 1

4 6 0 А B C 1. a) Prepare a schedule of cost of goods manufactured for 2 December 3 Hoth Manufacturing 5 Schedule of Cost of Goods Manufactured For the Month Ended December 31, 2019 7 Work-in-process, December 1 0 8 Direct Materials 9 Beginning raw materials 10 Raw materials purchases 58000 11 Raw materials available for use 58000 12 Ending raw materials inventory 24000 13 Direct materials requisitioned 34000 14 Direct labor 9000 15 Total factory overhead 10000 16 Ending work in process 10000 17 Cost of goods manufactured 43000 18 19 b) Prepare an income statement for December. 20 21 Hoth Manufacturing 22 Income Statement 23 For the Month Ended December 31, 2019 24 Sales revenue 140000 25 Cost of goods sold 26 Beginning finished goods 27 Cost of goods manufactured 43000 28 Ending finished goods 13000 30000 29 Gross profit 110000 30 Operating expenses 31 Administrative expense 23000 32 Selling expense 22000 33 Net income 65000 0

Above figures have been calculated in the following manner:

А B C 1 4 6 0 2 a) Prepare a schedule of cost of goods manufactured for December. 3 Hoth Manufacturing 5 Schedule of Cost of Goods Manufactured For the Month Ended December 31, 2019 7 Work-in-Process, December 1 8 Direct Materials 9 Beginning raw materials 0 10 Raw materials purchases 58000 11 Raw materials available for use =B9+B10 12 Ending raw materials inventory 24000 13 Direct materials requisitioned =B11-B12 14 Direct labor 9000 15 Total factory overhead 10000 16 Ending work in process 10000 17 Cost of goods manufactured =C13+C14+C15-C16 18 19 b) Prepare an income statement for December. 20 21 Hoth Manufacturing 22 Income Statement 23 For the Month Ended December 31, 2019 24 Sales revenue 140000 25 Cost of goods sold 26 Beginning finished goods 27 Cost of goods manufactured 43000 28 Ending finished goods 13000 =B27-B28 29 Gross profit =C24-C28 30 Operating expenses 31 Administrative expense 23000 32 Selling expense 22000 33 Net income =C29-C31-C32 0