Question

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May: Rainier Company Yakima Lompany 2Materials inventory, May 1 $281,680.00 $179,000.0 Materials inventory, May 31 4 Materials purchased 5 Cost of direct materials used in production 175,500.00 714,000.00 752,400.00 1,058,800.00 325,400.00 341,500.00 Direct labor 7Factory overhead 178,600.00 1,038,000.00 1,481,500.00 443,500.00 otal manufacturing costs incurred in May 9 Total manufacturing costs 10 Work in process inventory, May 1 11 Work in process inventory, May 31 12 Cost of goods manufactured 13 Finished goods inventory, May 1 4 Finished goods inventory, May 31 15 Sales 16 Cost of goods sold 2,677,200.00 540,600.00 453,200.00 1,025,500.00 477,800.00 496,400.00 4,140,000.00 201,500.00 1,678,000.00 1,042,000.00

Answer 1

	Rainier	Yakima
	Company	Company
Materials inventory, May 1	281680	179000
Materials inventory, May 31	243280	1,75,500
Materials purchased	7,14,000	3,41,500
Cost of direct materials used in production	7,52,400	3,45,000
Direct labor	10,58,800	5,14,400
Factory overhead	3,25,400	1,78,600
Total manufacturing costs incurred in May	21,36,600	10,38,000
Total manufacturing costs	26,77,200	14,81,500
Work in process inventory, May 1	5,40,600	4,43,500
Work in process inventory, May 31	4,53,200	4,56,000
Cost of goods manufactured	22,24,000	10,25,500
Finished goods inventory, May 1	4,77,800	2,01,500
Finished goods inventory, May 31	4,96,400	1,85,000
Sales	41,40,000	16,78,000
Cost of goods sold	22,05,400	10,42,000
Gross profit	19,34,600	6,36,000
Operating expenses	5,43,000	2,55,500
Net income	13,91,600	3,80,500
Letter	Rainier Company	Yakima Company
a.	243280	3,45,000
b.	21,36,600	5,14,400
c.	22,24,000	4,56,000
d.	22,05,400	1,85,000
e.	19,34,600	6,36,000
f.	13,91,600	2,55,500
Yakima Company
Statement of Cost of Goods Manufactured
For the Month Ended May 31
Work in process inventory, May 1			4,43,500
Direct materials:
Materials inventory, May 1	179000
Materials purchased	3,41,500
Total materials available	520500
Materials inventory, May 31	1,75,500
Cost of direct materials used in production		3,45,000
Direct labor		5,14,400
Factory overhead		1,78,600
Total manufacturing costs incurred during May			10,38,000
Total manufacturing costs			14,81,500
Work in process inventory, May 31			4,56,000
Cost of goods manufactured			10,25,500
Yakima Company
Income Statement
For the Month Ended May 31
Sales		16,78,000
Cost of goods sold:
Cost of goods manufactured	10,25,500
Finished goods inventory, May 1	2,01,500
Total goods available for sale	12,27,000
Finished goods inventory, May 31	1,85,000
Cost of goods sold		10,42,000
Gross profit		6,36,000
Operating expenses		2,55,500
Net income		3,80,500