Question

AutoSave 3 H B = ExcelTemplatestignment, CHCI (1) - Protected viena File Home Insert Draw Page Layout Formulas Review ViewHelp Quicktoos PROTECTED VIEW Be carefules from the Internet can contain s Unless you need to edit safe to stay in Protected frated B8 X For the Month Ended October 31, 2017 4 А 1 P1-5A Prepare a cost of goods manufactured schedule and a correct income statement 2 Empire Company is a manufacturer of smart phones. Its controller resigned in October 2017. 3 An inexperienced assistant accountant has prepared the following income statement for 4 the month of October 2017. EMPIRE COMPANY income Statement For the Month Ended October 31, 2017 Sales Revenue $780,000 Less: Operating Expenses - Raw materials purchases $264.000 Direct labor costs 190.000 Advertising expense 90,000 Selling and administrative salaries 75,000 Rent on factory facilities 60,000 Depreciation on sales equipment 45,000 Depreciation on factory equipment 31,000 28,000 Indirect labor cost 12.000 Utilities expense 8,000 $803,000 Insurance expense ($23,000) Net loss E14 E1-12 E1-16 P14 P1-5A CDI Type here to search

Answer 1

a) Cost of Goods Manufactured:
	Amount $	Amount $	Amount $
WIP BEGIN			20000
Raw material:
OB	18000
add:Purchases	264000
Total Available RM	282000
Less:CB	29000
RM used		253000
Direct Lab.		190000
Manuf. Overhead:
Rent on factory	60000
Depre fact equip	31000
Indir labor	28000
Utilities - factory	9000
Insurance factory	4800
Total Factory overhead		132800
Total Manuf. Costs			575800
Total cost of WIP			595800
Less: WIP ENDING			14000
Cost of goods manufactured(COGM)			581800
b) Income Statement for Oct month:
		Amount $
Sales Revenue		780000
COGS:
Op Finished Goods	30000
add:COGM	581800
Cost of goods available for sale	611800
Less:Cl Finished Goods	50000
COGS		561800
Gross Profit		218200
Operating Expenses:
Advertising exp.	90000
Selling & admin salaries	75000
Depre sales equip	45000
Utilities - Admin	3000
Insurance admin	3200
Total Operating expenses		216200
Net Income		2000