Question

StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March:

	Beginning Inventory			Ending Inventory
Raw materials	$	28,500		$	25,600
Work in process		21,600			46,300
Finished goods		79,800			68,600

Additional information for the month of March follows:

StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March:

Raw materials purchases	$	40,300
Indirect materials used		1,900
Direct labor		63,200
Manufacturing overhead applied		36,900
Selling, general, and administrative expenses		24,500
Sales revenue		237,700

Required:
1. Based on the above information, prepare a cost of goods manufactured report.

2. Based on the above information, prepare an income statement for the month of March.

StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March:

Answer 1

1.

StorSmart Company Cost of Goods Manufactured For the month ended March 31
Direct materials used	$	$
Raw materials beginning inventory	28,500
Add: Purchases	40,300
Less: Raw materials ending inventory	( 25,600)
Lss: Indirect materials used	(1,900)	41,300
Direct labor		63,200
Manufacturing overhead applied		36,900
Total Manufacturing Costs		141,400
Add: Work in Process beginning inventory		21,600
Total cost of Work in Process		163,000
Less: Work in Process ending inventory		(46,300)
Cost of Goods Manufactured		116,700

2.

StorSmart Company Income Statement For the month ended March 31
Sales Revenue		$ 237,700
Less: Cost of Goods Sold
Beginning Finished Goods Inventory	$ 79,800
Add: Cost of Goods Manufactured	116,700
Cost of Goods Available	196,500
Less: Ending Finished Goods Inventory	(68,600)
Cost of Goods Sold		127,900
Gross Profit		109,800
Selling, General and Administrative Expenses		24,500
Net Operating Income		$ 85,300