COST OF GOODS MANUFACTURED AND SOLD STATEMENTS AND NET INCOMEOR LOSSPROBLEM 2-5The Stiff Shirt Company has just completed its third year of operation. Sales for the yearwere $1,300,000, and inventories were as follows:DECEMBER 31JANUARY 1Raw materials inventoryWork-in-process inventoryFinished goods Inventory-0-$100,00064,000-0-$95,00076,000Costs for the period were as follows:Direct materials... $365,000Direct laborFactory overhead405,000445,500.....Selling expenses were $26,000. General and administrative expenses were $82,000.Required:a Prepare the following statements:1 Cost of goods manufactured2 Cost of goods soldb Compute the net income or loss.

The income statement is prepared to find net income or losses incurred during the period.

COST OF GOODS MANUFACTURED AND SOLD STATEMENTS AND NET INCOME OR LOSS The Stiff Shirt Company has just completed its third year of operation. Sales for the year were $1,300,000, and inventories were as follows: DECEMBER 31 JANUARY 1 Raw materials inventory Work-in-process inventory Finished goods Inventory -0- $95,000 76,000 -0- $100,000 64,000 Costs for the period were as follows: Direct materials.... $365,000 Direct labor Factory overhead 405,000 445,500 ..... Selling expenses were $26,000. General and administrative expenses were $82,000.

COST OF GOODS MANUFACTURED AND SOLD STATEMENTS AND NET INCOME OR LOSS The Stiff Shirt Company has just completed its third year of operation. Sales for the year were $1,300,000, and inventories were as follows: DECEMBER 31 JANUARY 1 Raw materials inventory Work-in-process inventory Finished goods Inventory -0- $95,000 76,000 -0- $100,000 64,000 Costs for the period were as follows: Direct materials.... $365,000 Direct labor Factory overhead 405,000 445,500 ..... Selling expenses were $26,000. General and administrative expenses were $82,000.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.23MCE

See similar textbooks

Similar questions

Cost of goods sold Pine Creek Company completed 200,000 units during the year at a cost of 3,000,000. The beginning finished goods inventory was 25,000 units at 310,000. Determine the cost of goods sold for 210,000 units, assuming a FIFO cost flow.
On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the year. On its year-end income statement, Pope reported cost of goods sold of 1,025,000. Calculate Popes December 31 ending inventory.
An excerpt from the last year’s final annual report ofKalamia manufacturing company reported the informationprovided in the table.Compute (a) inventory turnover and (b) weeks of supply,assuming an annual operation of 50 weeks and the cost of goodssold was €5,000,000. CATEGORY PART NO. AVERAGEINVENTORY UNIT VALUEUNITS € Raw materials RSI - 1 200 3RSI - 2 50 2RSI - 3 300 1RSI - 4 100 3, 5 Work-in-process CSI - 1 50 10CSI - 2 250 15 Finished goods FJ - 1 890 70FJ - 2 2000 77FJ - 3 870 90
3. Compute the raw materials inventory turnover for the most recent two years. Current year 1 year past 2 years past Ending raw materials inventory Beginning raw materials invent Raw materials used $321,000 288,645 2.755,000 Work Area 295.000 254,000 2,361,000 277,500 241,000 2,550,000
Work in process inventory on December 31 of the current year is $44,000. Work in process inventory increased by 60% during the year. Cost of goods manufactured amounts to $275,000. What are the total manufacturing costs incurred in the current year? a.$233,750 b.$291,500 c.$275,750 d.$302,000 Period costs include a.operating costs that are shown on the income statement when products are sold b.operating costs that are shown on the income statement in the period in which they are incurred c.current liabilities on the balance sheet d.current assets on the balance sheet On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include A.amortization of premium on bonds payable. B.receipts from the sale of investments. C.receipts from the issuance of common stock. D.payments for cash dividends.
Work in process inventory on December 31 of the current year is $44,000. Work in process inventory increased by 60% during the year. Cost of goods manufactured amounts to $275,000. The total manufacturing costs incurred in the current year are a.$302,000 b.$291,500 c.$275,750 d.$233,750
Analyzing Activity in Inventory AccountsSelected data concerning operations of Cascade Manufacturing Company for the past fiscal year follow: Raw materials used $ 400,000 Total manufacturing costs charged to production during the year (includes raw materials, direct labor, and manufacturing overhead applied at a rate of 60 percent of direct labor costs) 731,000 Cost of goods available for sale 876,000 Selling and general expenses 40,000 Inventories Beginning Ending Raw materials $ 70,000 $ 80,000 Work-in-process 85,000 30,000 Finished goods 90,000 110,000 Determine each of the following: Cost of raw materials purchased Direct labor costs charged to production Cost of goods manufactured Cost of goods sold
COST OF GOODS MANUFACTURED AND SOLD STATEMENTS AND NET INCOME OR LOSS PROBLEM 2-5 OSE EE 000,00 LEE3A The Stiff Shirt Company has just completed its third year of operation. Sales for the year were $1,300,000, and inventories were as follows: DECEMBER 31 JANUARY 1 Raw materials inventory Work-in-process inventory Finished goods inventory -0- --0- $100,000 64,000 $95,000 76,000 Costs for the period were as follows: aniu Direct materials....... Direct labor $365,000 405,000 445,500 PRE rer rod ateri co Factory overhead Insr Selling expenses were $26,000. General and administrative expenses were $82,000. Required: a Prepare the following statements: 1 Cost of goods manufactured 2 Cost of goods sold wolio XJE1dosoob Compute the net income or loss.
The following is the year ended data for Tiger Company: Sales Revenue $58,000 Cost of Goods Manufactured 21,000 Beginning Finished Goods Inventory 1,100 Ending Finished Goods Inventory 2,200 Selling Expenses 15,000 Administrative Expenses 3,900 What is the gross profit? A. $22,100 B. $38,100 C. $19,200 D.
Compute the Cost of Goods Manufactured and Cost of Goods Sold for West Nautical Company for the most recent year using the amounts described next. Assume that the Raw Materials Inventory contains only direct materials. End End Beginning of Year of Year of Year $23,000 $25,000 Insurance on plant.... $ 11,500 Raw materials inventory Depreciation-plant building and equipment. $ 13,400 $ 3,700 $ 77,000 Work in process inventory.. $35,000 $31,000 $22,000 Repairs and maintenance-plant. Finished goods inventory... $20,000 Purchases of direct materials... $74,000 Marketing expenses. $86,000 General and administrative expenses $ 28,500 Direct labor... Indirect labor.. $42,000
Need Help with this Question
Sweet Cheezus reported the following year-end information: Beginning Work in Process Inventory Cost of Goods Manufactured Beginning Finished Goods Inventory Ending Work in Process Inventory Ending Finished Goods Inventory How much is the company's Cost of Goods Sold for the year? $690,000 $680,000 $710,000 O $700,000 $74,000 $690,000 $44,000 $64,000 $34,000