Question

Exercise 5 At the beginning of 2019, Onyx Manufacturing Inc. had the following account balances: Finished Goods Inventory $12,400 $12,500 $15,000 Work in Progress Materials The following information refers to transactions occurred in 2019: Purchase of materials $164,000 $68,500 $124,000 $21,500 Direct labor incurred: Direct materials Manufacturing overhead: depreciation MOH: Indirect labor $88,000 $46,000 MOH: Indirect materials $340,000 $440,000 Jobs completed with cost of Jobs sold for total revenue of: $345,000 Jobs sold with cost of: Manufacturing overhead allocated to production: Selling and marketing expenses General and administrative expenses $150,000 $48,500 $12,800 $8,500 Interest expenses $4,700 Income tax expense Required: a) Journalize the transactions related to inventories, MOH (including the end-of-the-year adjustment), and sales of finished goods. b) Prepare the income statement for the year 2019, using the cost of goods sold format c) Prepare the income statement for the year 2019, using the total output format.

Answer 1

Statement of Cost of goods sold Particulars Amount Amount Beginning-Work in Progress S12.500 Direct Materials Used: Beginning-Direct Materials $ 15.000 Add Purchase of Materials S 1.64,000 Materials Available for Use $1,79.000 Indirect Materials $ 46,000 Less: Ending - Direct materials $9.000 179000-124000-46000 Direct Materials Used $ 1,24,000 Direct Labour Incurred S 68,500 Manufacturing Overhead reciation $ 21.500 Indirect labour $ 88,000 Indirect Materials $ 46,000$ 1,55,500 Total Manufacturing Cost $3,60,500 Ending -Work in Process $ 20,500 |360500-340000 $ 3.40.000 Cost of Goods Manufactured Add: Beginning of Finished Goods S12.400 Less : Ending of Finished Goods 7,400 340000+12400-345000 Cost of Goods Sold $3.45,000

Income Statement Particulars Amount Amount 3,45,000 A Cost of Goods Sold Less: Selling and marketing expense:s 48,500 General and administrative expenses$ 12,800 Interest expenses Income tax expenses Total expenses $ 8,500 $ 4,700 S2,70,500 A-B Net Income

AccountsTittle Debit Credit Materials S 1.64,000 Accounts Pavable S 1.64.000 $ 68,500 Wages Ex ses Wages pavable $ 68,500 Work in progres:s $ 68,500 $ 68,500 Wages Ex ses Work in progress 1,24,000 Materials $ 1,24,000 Manufacturing overhead $ 1,55,500 (21500+88000+46000) Materials $ 46,000 Inditrect Labour $ 88,000 reciation S 21,500 Finished goods S3,40.000 Work in progress $3,40.000 Sales $4.,40.000 Accounts Receivables $4,40.000 Cost of goods sold $3,45.000 Finished goods $3,45.000 Work in progress $1,50,000 Manufacturing overhead $1,50,000 Cost of goods sold $5.000 Manufacturing overhead $ 5,000 Under Applied overhead (1.55,000-1,50,000)