Hankook Company Statement of Cost of Goods Manufactured For the year ended Dec 31st_2015 Direct material used 12000 Finished goods inventory, Jan. 1, 2015 400 Office insurance 100 Manufacturing overhead: Marketing, distribution, and customer-service costs 50 Plant insurance 200 Indirect material 500 Plant utilities Total Manufacturing Cost Work in process inventory, Dec 31st 2015 Cost of goods manufactured 80 13330 300 13630 Hankook Company Statement of cost of goods sold For the year ended December 31, 2015 Work-in-process inventory, Jan. 1, 2015 Cost of goods manufactured Cost of goods available for sale Finished goods inventory, Dec. 31, 2015 Cost of goods sold. 1500 13630 15130 100 15030 Hankook Company Income statement For the year ended December 31, 2015 Revenue 25000 Plant supplies used Cost of goods sold 100 15030 Gross margin 9870 Operating costs: Direct labor 5000 Depreciation-plant and equipment Miscellaneous manufacturing overhead Office utilities 100 30 400 Operating income 4340

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Hankook Company employ new employee and are assigned to make Statement of Cost of Manufactured, Statement of Cost of Goods Sold, and Income Statement. The results attached on picture below

Questions :

a. Identify the period cost and the total in USD

b. If there is something wrong with the income statement above, correct the income statement above so all the item cost is where it should be.

c. Calculate the prime costs, conversion costs, manufacturing cost, and the period cost

Hankook Company
Statement of Cost of Goods Manufactured
For the year ended Dec 31st 2015
Direct material used
12000
Finished goods inventory, Jan. 1, 2015
400
Office insurance
100
Manufacturing overhead:
Marketing, distribution, and customer-service costs
50
Plant insurance
200
Indirect material
500
Plant utilities
Total Manufacturing Cost
Work in process inventory, Dec 31st 2015
80
13330
300
Cost of goods manufactured
13630
Hankook Company
Statement of cost of goods sold
For the year ended December 31, 2015
Work-in-process inventory, Jan. 1, 2015
Cost of goods manufactured
Cost of goods available for sale
Finished goods inventory, Dec. 31, 2015
Cost of goods sold.
1500
13630
15130
100
15030
Hankook Company
Income statement
For the year ended December 31, 2015
Revenue
25000
Plant supplies used
Cost of goods sold
Gross margin
100
15030
9870
Operating costs:
Direct labor
5000
Depreciation-plant and equipment
Miscellaneous manufacturing overhead
Office utilities
Operating income
100
30
400
4340
Transcribed Image Text:Hankook Company Statement of Cost of Goods Manufactured For the year ended Dec 31st 2015 Direct material used 12000 Finished goods inventory, Jan. 1, 2015 400 Office insurance 100 Manufacturing overhead: Marketing, distribution, and customer-service costs 50 Plant insurance 200 Indirect material 500 Plant utilities Total Manufacturing Cost Work in process inventory, Dec 31st 2015 80 13330 300 Cost of goods manufactured 13630 Hankook Company Statement of cost of goods sold For the year ended December 31, 2015 Work-in-process inventory, Jan. 1, 2015 Cost of goods manufactured Cost of goods available for sale Finished goods inventory, Dec. 31, 2015 Cost of goods sold. 1500 13630 15130 100 15030 Hankook Company Income statement For the year ended December 31, 2015 Revenue 25000 Plant supplies used Cost of goods sold Gross margin 100 15030 9870 Operating costs: Direct labor 5000 Depreciation-plant and equipment Miscellaneous manufacturing overhead Office utilities Operating income 100 30 400 4340
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