Question

1. Calculate the Cost of Goods Manufactured and the Cost of Goods Sold. 2. Complete the attached Income Statement 3. Complete the attached Retained Earnings Statement. 4. Complete the attached Balance Sheet. 5. Answers the Questions XY&Z Corporation Trial Balance January 31, 20XX Dr. Cr. Cash 2,770 Accounts Receivable Raw Materials Inventory Work in Process Inventory Finished Goods Inventory Equipment Accumulated Depreciation Accounts Payable Wages Payable Common Stock 440,800 7,800 ? (c) 25,000 359.000 29,150 147,000 111,950 10,000 189,600 301,500 425,800 PIC in Excess of Par Retained Earnings Sales Cost of Goods Sold Administrative expenses Selling expenses 272,030 65,300 25,700 1,215,000 1,215,000 Inventory balances on January 1: Finished Goods Inventory Raw Materials Inventory ? (d) 10,000 7290ו Work in Process Inventory Additional Information: Direct labor used 86,150 128,500 ? (b) ? (e) 8,700 ? (a) Direct materials used Factory overhead applied Indirect labor used Indirect materials used Materials purchased Other indirect costs 32,230

i need it to be answered as soon as possible please with explanations (in details for every step and every question)

Answer 1

1	Schedule of cost of goods manufactured:
						$	$
	Cost of materials used:
	Materials inventory,January 1						10000
	Add: Cost of materials purchased						126300	(a)
	Cost of materials available for use						136300
	Less: Materials inventory,January 31						7800
	Cost of materials used						128500
	Cost of goods manufactured:
	Work in process inventory,January 1						17250
	Direct materials					128500
	Direct labor					86150
	Factory overhead applied					64100		(b)
	Add: Total manufacturing cost						278750
	Total cost of work in process						296000
	Less: Work in process inventory,January 31						16600	c)
	Cost of goods manufactured						279400
	Cost of goods sold:
	Finished goods inventory,January 1						15000	(d)
	Add: Cost of goods manufactured						279400
	Cost of goods available for sale						294400
	Less: Finished goods inventory,January 31						25000
	Cost of goods sold						269400
	Factory overhead:
	Indirect materials used					8700
	Indirect labor used					25800	e)
	Other overhead costs incurred					32230
	Total overhead incurred					66730
		Note:
	a)	Cost of materials purchased:
							$
		Materials inventory,January 31					7800
		Direct materials used					128500
							136300
		Less: Materials inventory,January 1					10000
		Cost of materials purchased					126300
	b)	Factory overhead applied:
		Total manufacturing cost=Direct materials+Direct labor+Factory overhead applied
		Factory overhead applied=Total manufacturing cost-Direct materials-Direct labor=278750-128500-86150=$ 64100
	c)	Work in process inventory,Jan 31:
		Only missing figure in the trial balance is work in process inventory
		Hence,balancing figure in Debit side will provide work in process inventory balance
		Work in process inventory,Jan 31=1215000-(2770+440800+7800+25000+359000+272030+65300+25700)=$ 16600
	d)	Cost of goods available for sale=Finished goods inventory,January 1+Cost of goods manufactured
		Finished goods inventory,January 1=Cost of goods available for sale-Cost of goods manufactured=294400-279400=$ 15000
	e)	Total overhead incurred=Indirect materials used+Indirect labor used+Other overhead costs incurred
		Indirect labor used=Total overhead incurred-Indirect materials used-Other overhead costs incurred=66730-8700-32230=$ 25800
	Answer to the questions:
	1	Cost of goods sold computed=$ 269400
	2	Cost of goods sold as per ledger=$ 272030
	3	Difference=272030-269400=$ 2630
	4	Difference=Factory overhead incurred-Factory overhead applied=66730-64100=$ 2630
2			Income statement
							$	$
	Sales							425800
	Cost of goods sold							272030
	Gross profit							153770
	Operating expenses:
	Selling expenses						25700
	Administrative expenses						65300
	Total operating expenses							91000
	Net income							62770
3			Retained earnings statement
								$
	Retained earnings,January 1,20XX							301500
	Net income							62770
	Retained earnings,January 31,20XX							364270