Question

The following information is available for Marks Company at December 31, 2017: 1. Inventory balance Beginning of Year End of Year Finished Goods $14,000 $10,000 Work in Process 6,000 12,000 Raw Materials 10,300 6,500 2. Debit postings to Work in Process Inventory during the year were: Direct materials $90,000 Direct labor 60,000 Manufacturing overhead applied 75,000 3. Sales totaled $310,000 for the year. make an income statement for the following data

Answer 1

Cost of goods manufactured:
Beginning inventory of WIP		6000
Add: current cost of manufacturing
Raw material used		90,000
Direct labor cost		60,000
Manufacturing oh applied	75,000
Current cost of manufacturing		2,25,000
Total cost of goods manufacturing	2,31,000
Less: Ending inventory of WIP		12,000
Cost of goods manufactured:		2,19,000
Income Statement:
Sales revenue			3,10,000
Less: Cost of goods sold
Beginning inventory of FG	14000
Add: Cost of goods manufactured	219000
Total cost of goods available	233000
less: Ending inventory of FG	10000
Cost of goods sold			223000
Gross Margin			87000