Question

Selected data for Jacobe Inc. for the month of July 2020 are presented below:

Description	Amount
Work in process inventory, opening	$17,000
Work in process inventory, closing	$12,000
Raw materials inventory, opening	$10,000
Raw materials inventory, closing	$13,000
Assembly line worker's salary	$70,000
Direct material purchases	$34,000
Customer delivery costs	$22,000
Salary of salespeople	$143,000
Depreciation on factory equipment	$34,000
Factory supervisor salary	$49,000
Sales revenue	$516,000
Factory utility costs	$17,000
Marketing and admin costs	$117,000
Finished goods inventory, opening	$29,000
Finished goods inventory, closing	$39,000

Using the above information, develop a Schedule of Cost of Goods Manufactured and an Income Statement. Use the information to answer the following questions.

What is the total Direct Materials Used from the Schedule of Cost of Goods Manufactured?

What is the total Direct Labour from the Schedule of Cost of Goods Manufactured?

What is the total Manufacturing Overhead costs from the Schedule of Cost of Goods Manufactured?

What is the total Cost of Goods Manufactured from the Schedule of Cost of Goods Manufactured?

What is the total Cost of Goods Sold from the Income Statement?

What is the total Operating Income from the Income Statement?

Answer 1

Jacobe Inc.

Schedule of Cost of Goods Manufactured

For the Month Ended July 2020

Jacobe Inc.

Income Statement

For the Month Ended July 2020

1. Total Direct Materials Used from the Schedule of Cost of Goods Manufactured = $31,000

2. Total Direct Labor from the Schedule of Cost of Goods Manufactured = $70,000

3. Total Manufacturing Overhead costs from the Schedule of Cost of Goods Manufactured = $100,000

4. Total Cost of Goods Manufactured from the Schedule of Cost of Goods Manufactured = $206,000

5. Total Cost of Goods Sold from the Income Statement = $196,000

6. Total Operating Income from the Income Statement = $38,000

All the best...