Choice's manufacturing costing system uses a three-part classification of direct materials, direct manufacturing labor, and manufacturing overhead costs. The following items (in millions) pertain t Choice Corporation: (Click the icon to view the items.) Requirement Prepare an income statement and a supporting schedule of cost of goods manufactured. Data table ividi iuiautuiny costs incuntu Uunny Evev 18 Beginning work-in-process inventory, Jan. 1, 2020 Total manufacturing costs to account for Ending work-in-process inventory, Dec. 31, 2020 Cost of goods manufactured 327 5 322 Now prepare the income statement for Choice Corporation (in millions). (Use parentheses or a Choice Corporation Income Statement For the Year Ended December 31, 2020 To specme Date Work-in-process inventory, January 1, 2020 Direct materials inventory, December 31, 2020 Finished-goods inventory, December 31, 2020 Accounts payable, December 31, 2020 Accounts receivable, January 1, 2020 Work-in-process inventory, December 31, 2020 Finished-goods inventory, January 1, 2020 Accounts receivable, December 31, 2020 Accounts payable, January 1, 2020 Direct materials inventory, January 1, 2020 $ 18 7 10 25 56 5 50 39 48 36 Revenues 356 For Year 2020 Cost of goods sold: Beginning finished goods, Jan. 1, 2020 Cost of goods manufactured Cost of goods available for sale Cost of goods available for sale Gross margin Marketing, distribution, and customer-service costs Operating income/(loss) 10 322 Plant utilities Indirect manufacturing labor Depreciation-plant and equipment Revenues Miscellaneous manufacturing overhead Marketing, distribution, and customer-service costs Direct materials purchased Direct manufacturing labor Plant supplies used Property taxes on plant 6 23 4 14 89 45 8 ° སྙ * ༔ ༈ ཆ ྨ ུ 。 ་ 356 2
Choice's manufacturing costing system uses a three-part classification of direct materials, direct manufacturing labor, and manufacturing overhead costs. The following items (in millions) pertain t Choice Corporation: (Click the icon to view the items.) Requirement Prepare an income statement and a supporting schedule of cost of goods manufactured. Data table ividi iuiautuiny costs incuntu Uunny Evev 18 Beginning work-in-process inventory, Jan. 1, 2020 Total manufacturing costs to account for Ending work-in-process inventory, Dec. 31, 2020 Cost of goods manufactured 327 5 322 Now prepare the income statement for Choice Corporation (in millions). (Use parentheses or a Choice Corporation Income Statement For the Year Ended December 31, 2020 To specme Date Work-in-process inventory, January 1, 2020 Direct materials inventory, December 31, 2020 Finished-goods inventory, December 31, 2020 Accounts payable, December 31, 2020 Accounts receivable, January 1, 2020 Work-in-process inventory, December 31, 2020 Finished-goods inventory, January 1, 2020 Accounts receivable, December 31, 2020 Accounts payable, January 1, 2020 Direct materials inventory, January 1, 2020 $ 18 7 10 25 56 5 50 39 48 36 Revenues 356 For Year 2020 Cost of goods sold: Beginning finished goods, Jan. 1, 2020 Cost of goods manufactured Cost of goods available for sale Cost of goods available for sale Gross margin Marketing, distribution, and customer-service costs Operating income/(loss) 10 322 Plant utilities Indirect manufacturing labor Depreciation-plant and equipment Revenues Miscellaneous manufacturing overhead Marketing, distribution, and customer-service costs Direct materials purchased Direct manufacturing labor Plant supplies used Property taxes on plant 6 23 4 14 89 45 8 ° སྙ * ༔ ༈ ཆ ྨ ུ 。 ་ 356 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Requirement
Prepare an income statement and a supporting schedule of cost of goods manufactured.
Transcribed Image Text:Choice's manufacturing costing system uses a three-part classification of direct materials, direct manufacturing labor, and manufacturing overhead costs. The following items (in millions) pertain t
Choice Corporation:
(Click the icon to view the items.)
Requirement
Prepare an income statement and a supporting schedule of cost of goods manufactured.
Data table
ividi iuiautuiny costs incuntu Uunny Evev
Beginning work-in-process inventory, Jan. 1, 2020
Total manufacturing costs to account for
Ending work-in-process inventory, Dec. 31, 2020
Cost of goods manufactured
18
327
5
322
Now prepare the income statement for Choice Corporation (in millions). (Use parentheses or a
Choice Corporation
Income Statement
For the Year Ended December 31, 2020
356
To specme Date
Work-in-process inventory, January 1, 2020
Direct materials inventory, December 31, 2020
Finished-goods inventory, December 31, 2020
Accounts payable, December 31, 2020
Accounts receivable, January 1, 2020
Work-in-process inventory, December 31, 2020
Finished-goods inventory, January 1, 2020
Accounts receivable, December 31, 2020
Accounts payable, January 1, 2020
Direct materials inventory, January 1, 2020
For Year 2020
Revenues
Cost of goods sold:
Beginning finished goods, Jan. 1, 2020
Cost of goods manufactured
Cost of goods available for sale
Cost of goods available for sale
Gross margin
Marketing, distribution, and customer-service costs
Operating income/(loss)
10
322
$
18
7
10
25
56
5
50
39
48
36
Plant utilities
Indirect manufacturing labor
Depreciation-plant and equipment
Revenues
Miscellaneous manufacturing overhead
Marketing, distribution, and customer-service costs
Direct materials purchased
Direct manufacturing labor
Plant supplies used
Property taxes on plant
6
4
14
91
45
° གླ * ༔ ་ ཆ གླ ུ ༤
356
8
2
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education