Question

The Rouse Corporation has the following account balances (in millions): (Click the icon to view the account balances.) Requirement Prepare an income statement and a supporting schedule of cost of goods manufactured for the vear ended December 31, 2017 i Data Table Jle by calculating the cost of goods manufactured. Begin by preparing the schedule of cost of goods manu Rouse Corporation Schedule of Cost of Goods Mal For the Year Ended December 31, 2 For Specific Date $ Direct materials costs: Direct materials inventory, Jan. 1, 2017 Work-in-process inventory, Jan. 1, 2017 Finished goods inventory, Jan. 1, 2017 Direct materials inventory, Dec. 31, 2017 Work-in-process inventory, Dec. 31, 2017 Finished goods inventory, Dec. 31, 2017 For Year 2017 12 Purchases of direct materials 11 Direct manufacturing labor 73 Depreciation-plant and equipment 23 Plant supervisory salaries 4 Miscellaneous plant overhead 54 Revenues Marketing, distribution, and customer-service costs Direct materials used Direct manufacturing labor costs Plant supplies used Plant utilities Indirect manufacturing labor Print Done

Answer 1

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Rouse Corporation
Answer 1
Cost of goods manufactured	$ Millions
Beginning Raw material inventory	12.00
Raw material Purchases	310.00
Total Raw material available for use	322.00
Less: Ending Raw material inventory	23.00
Direct materials used	299.00
Direct Labor	105.00
Manufacturing Overhead
Depreciation- plant & equipment	70.00
Plant supervisory salaries	4.00
Miscellaneous plant overhead	40.00
Plant supplies used	11.00
Plant utilities	26.00
Indirect Manufacturing Labor	66.00
Total Manufacturing Overhead	217.00
Total Manufacturing costs	621.00
Beginning Work in process inventory	11.00
Total cost of work in process	632.00
Less: Ending Work in process inventory	4.00
Cost of goods manufactured	628.00
Cost of goods sold	$ Millions
Beginning Finished goods inventory	73.00
Cost of goods manufactured	628.00
Cost of goods available for sale	701.00
Less: Finished goods inventory, ending	54.00
Cost of goods sold	647.00
Answer 3
Income Statement	$ Millions
Sales Revenues
Sales Revenues	960.00
Net Sales	960.00
Less: Cost of goods sold	647.00
Gross Profit	313.00
Less: Operating Expenses
Marketing, distribution and customer	240.00
Total Operating Expenses	240.00
Net Income	73.00