Question

Income Statement for a Manufacturing Company Two items are omitted from each of the following three lists of cost of goods sold data from a manufacturing company income statement. Determine the amounts of the missing items, identifying them by letter. Finished goods inventory, June 1 $65,900 $21,700 (e) Cost of goods manufactured 349,300 (c) 76,000 Cost of finished goods available for sale (a) $206,200 $119,400 Finished goods inventory, June 30 80,500 43,300 (f) Cost of goods sold (b) (d) $109,800 a. $ b. $ c. $ d. $ e. $ f. $

Answer 1

(a)

Cost of Finished goods available for sale = Finished goods inventory, June 1 + Cost of goods manufactured

= $65,900 + $349,300

= $415,200

(b)

Cost of goods sold = Cost of Finished goods available for sale - Finished goods inventory, June 30

= $415,200 - $80,500

= $334,700

(c)

Cost of goods manufactured = Cost of finished goods available for sale - Finished goods inventory, June 1

= $206,200 - $21,700

= $184,500

(d)

Cost of goods sold = Cost of finished goods available for sale - Finished goods inventory, June 30

= $206,200 - $43,300

= $162,900

(e)

Finished goods inventory, June 1 = Cost of finished goods available for sale - Cost of goods manufactured

= $119,400 - $76,000

= $43,400

(f)

Finished goods inventory, June 30 = Cost of finished goods available for sale - Cost of goods sold

= $119,400 - $109,800

= $9,600