Question

Question 7 xteks Corporation has the following cost records for the year ended December 31, 2020 Indirect factory labour Direct materials used Work in process (1/1/2020) $5,480 253,600 31,000 27,200 35,300 29,100 41,500 Work in process (12/31/2020) Finished goods (1/1/2020) Finished goods (12/31/2020) Factory utilities Depreciation, factory equipment Direct labour 34,400 303,300 Indirect materials Factory manager's salary Selling and administrative expenses Net sales Factory machinery rent 22,600 63,100 341,300 1,243,000 42,900 Prepare a cost of goods manufactured schedule for 2020. Axteks Corporation Cost of Goods Manufactured Year Ended December 31, 2020 Work in Process, December 31 Direct Materials Used Direct Labour s 27,200 253,600

Answer 1

1.

Axteks Corporation Cost of Goods Manufactured Year ended December 31, 2020
	$	$
Work in Process, January 1		31,000
Direct materials used	253,600
Direct labor	303,300
Manufacturing overhead
Indirect factory labor	5,480
Factory utilities	41,500
Depreciation , factory equipment	34,400
Indirect materials	22,600
Factory manager's salary	63,100
Factory machine rent	42,900
Total Manufacturing Costs		766,880
Total cost of Work in Process		797,880
Less: Work in Process, December 31		(27,200)
Cost of Goods Manufactured		$ 770,680

2.

Axteks Corporation Income Statement For the year ended December 31, 2020
	$	$
Net Sales		1,243,000
Less: Cost of Goods Sold
Finished Goods, January 1	35,300
Cost of Goods Manufactured	770,680
Less: Finished Goods, December 31	(29,100)	776,880
Gross Profit		466,120
Less: Selling and Administration Expenses		341,300
Net Operating Income		$ 124,820