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 May. 1 Rainier Company Yakima Company 2 Materials inventory, May 1 $281,680.00 $179,000.00 3 Materials inventory, May 31 (a) 175,500.00 4 Materials purchased 714,000.00 341,500.00 5 Cost of direct materials used in production 752,400.00 (a) 6 Direct labor 1,058,800.00 (b) 7 Factory overhead 325,400.00 178,600.00 8 Total manufacturing costs incurred during May (b) 1,038,000.00 9 Total manufacturing costs 2,677,200.00 1,481,500.00 10 Work in process inventory, May 1 540,600.00 443,500.00 11 Work in process inventory, May 31 453,200.00 (c) 12 Cost of goods manufactured (c) 1,025,500.00 13 Finished goods inventory, May 1 477,800.00 201,500.00 14 Finished goods inventory, May 31 496,400.00 (d) 15 Sales 4,140,000.00 1,678,000.00 16 Cost of goods sold (d) 1,042,000.00 17 Gross profit (e) (e) 18 Operating expenses 543,000.00 (f) 19 Net income (f) 380,500.00 Required: 1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers. 2. Prepare Yakima Company’s statement of cost of goods manufactured for May.* 3. Prepare Yakima Company’s income statement for May.* *Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Enter all amounts as positive numbers.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 May.

1		Rainier Company	Yakima Company
2	Materials inventory, May 1	$281,680.00	$179,000.00
3	Materials inventory, May 31	(a)	175,500.00
4	Materials purchased	714,000.00	341,500.00
5	Cost of direct materials used in production	752,400.00	(a)
6	Direct labor	1,058,800.00	(b)
7	Factory overhead	325,400.00	178,600.00
8	Total manufacturing costs incurred during May	(b)	1,038,000.00
9	Total manufacturing costs	2,677,200.00	1,481,500.00
10	Work in process inventory, May 1	540,600.00	443,500.00
11	Work in process inventory, May 31	453,200.00	(c)
12	Cost of goods manufactured	(c)	1,025,500.00
13	Finished goods inventory, May 1	477,800.00	201,500.00
14	Finished goods inventory, May 31	496,400.00	(d)
15	Sales	4,140,000.00	1,678,000.00
16	Cost of goods sold	(d)	1,042,000.00
17	Gross profit	(e)	(e)
18	Operating expenses	543,000.00	(f)
19	Net income	(f)	380,500.00

Required:

1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

2. Prepare Yakima Company’s statement of cost of goods manufactured for May.*

3. Prepare Yakima Company’s income statement for May.*

*Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Enter all amounts as positive numbers.

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