Question

Income Statement

Lederman Manufacturing Corporation sold 21,000 units of product for $42 each during 2016. During the year, 7,000 shares of common stock were outstanding.

Lederman Manufacturing Corporation Schedule of Cost of Goods Manufactured and Sold For the Year Ended December 31,2016
Direct material:
Beginning materials inventory		$35,000
Cost of materials purchased		175,000
Cost of material available		210,000
Less: Ending materials Inventory		21,000
Total materials used		189,000
Less: Indirect material used		16,800
Direct materials used			$172,200
Direct labor			207,200
Manufacturing overhead
Indirect material		16,800
Indirect labor		51,800
Factory supplies used		14,000
Factory depreciation		91,000
Factory repairs and maintenance		29,400
Total manufacturing overhead			203,000
Total manufacturing costs for the year			582,400
Add: Beginning work in process inventory			42,000
Total cost of work in process during the year			624,400
Less: Ending work in process inventory			57,400
Cost of goods manufactured			567,000
Add: Beginning finished goods inventory			71,400
Cost of goods available for sale			638,400
Less: Ending finished goods inventory			50,400
Cost of goods sold			$588,000
Selling expenses (total)			$86,800
Non-factory administrative expenses (total)			81,200

Prepare an income statement for the year (ignore income taxes). Calculate earnings per share.

Do not use negative signs with answers. Round earnings per share to two decimal places.

Lederman Maufacturing Corporation Income Statement For the Year Ended December 31,2016
AnswerCost of goods soldNet incomeNon-factory administrative expensesSalesSelling expenses		Answer
AnswerCost of goods soldNet incomeNon-factory administrative expensesSalesSelling expenses		Answer
Gross profit on sales		Answer
Operating expenses:
AnswerCost of goods soldNet incomeSalesSelling expenses	Answer
AnswerCost of goods soldNet incomeNon-factory administrative expensesSales	Answer	Answer
AnswerCost of goods soldNet incomeNon-factory administrative expensesSalesSelling expenses		Answer
Earnings per share of common stock		Answer

Answer 1

Lederman Manufacturing Corporation Income Statement For the Year Ended December 31, 2016 Sales (21,000 x $42) $882,000 Cost of goods sold ($588,000) Gross profit on sales $294,000 Operating expenses Selling expenses $86,800 Non-factory administrative expenses $81,200 ($168,000) Net income $126,000 Earnings per share of common stock ($126,000/7,000 shares) $18