Question

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December On Off Company Company $88,710 $117,980 Materials inventory, December 1 Materials inventory, December 31 (a) 133,320 Materials purchased 225,320 Cost of direct materials used in production 237,740 Direct labor 334,440 265,460 103,790 Factory overhead 132,140 Total manufacturing costs incurred in December 763,330 (b) Total manufacturing costs 846,290 1,047,660 170,320 284,330 Work in process inventory, December 1 Work in process inventory, December 31 143,710 Cost of goods manufactured (c) 756,250 Finished goods inventory, December 1 149,920 132,140 Finished goods inventory, December 31 157,020 Sales 1,307,590 1,179,800 Cost of goods sold (d) 763,330 Gross profit Operating expenses 170,320 (f) Net income 261,920 Required 1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers Required: 1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers On Company Letter Off Company 88,710 117,980 a. b. C. d. 2. Prepare On Company's statement of cost of goods manufactured for December On Company Statement of Cost of Goods Manufactured For the Month Ended December 31 Direct materials: Total manufacturing costs incurred during December Total manufacturing costs 3. Prepare On Company's income statement for December. On Company Income Statement For the Month Ended December 31 Cost of goods sold:

Answer 1

Answer 1						Answer 2
Determination of missing amounts						On Company
	On Company	Off Company				Statement of Cost of Goods Manufactured
a	$76,290.00	$665,400.00				for the month ended December 31
b	$675,970.00	$650,060.00				Work in process Inventory , December 1			$170,320.00
c	$702,580.00	$575,740.00				Direct Materials
d	$695,480.00	$125,060.00				Materials Inventory, December 1	$88,710.00
e	$612,110.00	$416,470.00				Add : Materials Purchases	$225,320.00
f	$441,790.00	$154,550.00				Total Materials available	$314,030.00
						Less : Materials Inventory, December 31	$76,290.00
On Company			Off Company			Cost of Material used in the production		$237,740.00
Answer a			Answer a			Direct Labor		$334,440.00
Material Inventory , December 1	$88,710.00		Cost of direct material used in production	$650,060.00		Factory Overheads		$103,790.00
Add : Materials Purchased	$225,320.00		Add:Material Inventory , December 31	$133,320.00		Total Manufacturing Cost incurred during December			$675,970.00
Less : Cost of direct material used in production	$237,740.00		Less : Material Inventory , December 1	$117,980.00		Total Manufacturing Costs			$846,290.00
Material Inventory , December 31	$76,290.00		Material purchased	$665,400.00		Less :Work in Process Inventory, December 31			$143,710.00
						Cost of Goods Manufactured			$702,580.00
Answer b			Answer b
Cost of direct material used in production	$237,740.00		Total Manufacturing Cost	$1,047,660.00
Direct Labor	$334,440.00		Less : Direct Labor	$265,460.00		Answer 3
Factory Overhead	$103,790.00		Less : Factory Overhead	$132,140.00		On Company
Total Manufacturing Cost incurred in December	$675,970.00		Cost of direct material used in production	$650,060.00		Income Statement
						for the month ended December 31
Answer c			Answer c			Sales		$1,307,590.00
Total Manufacturing Cost incurred in December	$675,970.00		Total Manufacturing Cost	$1,047,660.00		Cost of Goods sold
Add : Work in process Inventory , December 1	$170,320.00		Add : Work in process Inventory , December 1	$284,330.00		Finished Goods Inventory , December 1	$149,920.00
Less : Work in process Inventory , December 31	$143,710.00		Less : Cost of goods Manufactured	$756,250.00		Add : Cost of goods Manufactured	$702,580.00
Cost of goods Manufactured	$702,580.00		Work in process Inventory, December 31	$575,740.00		Total cost of Goods available for sale	$852,500.00
						Less : Finished Goods Inventory , December 31	$157,020.00
Answer d			Answer d			Cost of Goods sold		$695,480.00
Cost of goods Manufactured	$702,580.00		Cost of goods sold			Gross Margin		$612,110.00
Add : Finished Goods Inventory , December 1	$149,920.00		Cost of goods Manufactured	$756,250.00		Less : operating Expenses		$170,320.00
Less : Finished Goods Inventory , December 31	$157,020.00		Add : Finished Goods Inventory , December 1	$132,140.00		Net Income		$441,790.00
Cost of goods sold	$695,480.00		Less :Cost of goods sold	$763,330.00
			Finished Goods Inventory , December 31	$125,060.00
Answer e
Sales	$1,307,590.00		Answer e
Less : Cost of goods sold	$695,480.00		Sales	$1,179,800.00
Gross Profit	$612,110.00		Less : Cost of goods sold	$763,330.00
			Gross Profit	$416,470.00
Answer f
Gross Profit	$612,110.00		Answer f
Less : Operating Expenses	$170,320.00		Gross Profit	$416,470.00
Net Income	$441,790.00		Less : Net Income	$261,920.00
			Operating Expenses	$154,550.00