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	$71,890		$97,770
Materials inventory, December 31	(a)		110,480
Materials purchased	182,600		(a)
Cost of direct materials used in production	192,670		(b)
Direct labor	271,030		219,980
Factory overhead	84,110		109,500
Total manufacturing costs incurred in December	(b)		632,570
Total manufacturing costs	685,840		868,200
Work in process inventory, December 1	138,030		235,630
Work in process inventory, December 31	116,460		(c)
Cost of goods manufactured	(c)		626,710
Finished goods inventory, December 1	121,490		109,500
Finished goods inventory, December 31	127,250		(d)
Sales	1,059,660		977,700
Cost of goods sold	(d)		632,570
Gross profit	(e)		(e)
Operating expenses	138,030		(f)
Net income	(f)		217,050

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.	$	$
b.	$	$
c.	$	$
d.	$	$
e.	$	$
f.	$	$

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
			$
Direct materials:
	$
	$
		$
Total manufacturing costs incurred during December
Total manufacturing costs			$
			$

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

On Company
Income Statement
For the Month Ended December 31
		$
Cost of goods sold:
	$
	$
		$

Answer 1

Answer is given below