Question

Manufacturing Income Statement, Statement of Cost of Goods Manufactured

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December.

	On Company		Off Company
Materials inventory, December 1	$76,800		$98,300
Materials inventory, December 31	(a)		111,080
Materials purchased	195,070		(a)
Cost of direct materials used in production	205,820		(b)
Direct labor	289,540		221,180
Factory overhead	89,860		110,100
Total manufacturing costs incurred in December	(b)		636,000
Total manufacturing costs	732,680		872,900
Work in process inventory, December 1	147,460		236,900
Work in process inventory, December 31	124,420		(c)
Cost of goods manufactured	(c)		630,100
Finished goods inventory, December 1	129,790		110,100
Finished goods inventory, December 31	135,940		(d)
Sales	1,132,030		983,000
Cost of goods sold	(d)		636,000
Gross profit	(e)		(e)
Operating expenses	147,460		(f)
Net income	(f)		218,230

Required:

1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

Letter	On Company	Off Company
a.	$fill in the blank bd4106f9fff4037_1	$fill in the blank bd4106f9fff4037_2
b.	$fill in the blank bd4106f9fff4037_3	$fill in the blank bd4106f9fff4037_4
c.	$fill in the blank bd4106f9fff4037_5	$fill in the blank bd4106f9fff4037_6
d.	$fill in the blank bd4106f9fff4037_7	$fill in the blank bd4106f9fff4037_8
e.	$fill in the blank bd4106f9fff4037_9	$fill in the blank bd4106f9fff4037_10
f.	$fill in the blank bd4106f9fff4037_11	$fill in the blank bd4106f9fff4037_12

2. Prepare On Company's statement of cost of goods manufactured for December.

On Company
Statement of Cost of Goods Manufactured
For the Month Ended December 31
			$fill in the blank 4025ca003f8605d_2
Direct materials:
	$fill in the blank 4025ca003f8605d_4
	fill in the blank 4025ca003f8605d_6
	$fill in the blank 4025ca003f8605d_8
	fill in the blank 4025ca003f8605d_10
		$fill in the blank 4025ca003f8605d_12
		fill in the blank 4025ca003f8605d_14
		fill in the blank 4025ca003f8605d_16
Total manufacturing costs incurred during December			fill in the blank 4025ca003f8605d_17
Total manufacturing costs			$fill in the blank 4025ca003f8605d_18
			fill in the blank 4025ca003f8605d_20
			$fill in the blank 4025ca003f8605d_22

3. Prepare On Company's income statement for December.

On Company
Income Statement
For the Month Ended December 31
		$fill in the blank 611d20005fff026_2
Cost of goods sold:
	$fill in the blank 611d20005fff026_4
	fill in the blank 611d20005fff026_6
	$fill in the blank 611d20005fff026_8
	fill in the blank 611d20005fff026_10
		fill in the blank 611d20005fff026_12
		$fill in the blank 611d20005fff026_14
		fill in the blank 611d20005fff026_16
		$fill in the blank 611d20005fff026_18

Answer 1

• Requirements asked

[1]

Letter	On Company	Off Company
a.	$66,050	$317,500
b.	$585,220	$304,720
c.	$608,260	$242,800
d.	$602,110	$104,200
e.	$529,920	$347,000
f.	$235,010	$128,770

[2]

Statement of Cost of Goods Manufactured
For the Month Ended December 31
Work in process inventory, December 1			$147,460
Direct materials:
Materials inventory, December 1	$76,800
Materials purchased	$195,070
Material available fo ruse	$271,870
Materials inventory, December 31	($66,050)
Cost of direct materials used in production		$205,820
Direct labor		$289,540
Factory overhead		$89,860
Total manufacturing costs incurred during December			$585,220
Total manufacturing costs			$732,680
Work in process inventory, December 31			($124,420)
Cost of Goods manufactured			$608,260

[3]

On Company
Income Statement
For the Month Ended December 31
Sales		$1,132,030
Cost of goods sold:
Finished goods inventory, December 1	$129,790
Cost of Goods manufactured	$608,260
Cost of Goods available for sale	$738,050
Finished goods inventory, December 31	($135,940)
Cost of Goods Sold		$602,110
Gross Profits		$529,920
Operating expenses		$294,910
Net income		$235,010

• Working

	On		Off
	Company		Company
Materials inventory, December 1	76800		98300
Materials inventory, December 31	=76800+195070-205820		111080
Materials purchased	195070		=111080+304720-98300
Cost of direct materials used in production	205820		=636000-221180-110100
Direct labor	289540		221180
Factory overhead	89860		110100
Total manufacturing costs incurred in December	=205820+289540+89860		636000
Total manufacturing costs	732680		872900
Work in process inventory, December 1	147460		236900
Work in process inventory, December 31	124420		=872900-630100
Cost of goods manufactured	=732680-124420		630100
Finished goods inventory, December 1	129790		110100
Finished goods inventory, December 31	135940		=630100+110100-636000
Sales	1132030		983000
Cost of goods sold	=608260+129790-135940		636000
Gross profit	=1132030-602110		=983000-636000
Operating expenses	=529920-235010		=347000-218230
Net income	=382470-147460		218230