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 $87,370 $114,450 Materials inventory, December 31 (a) 129,330 Materials purchased 221,920 (a) Cost of direct materials used in production 234,150 (b) Direct labor 329,380 257,510 Factory overhead 102,220 128,180 Total manufacturing costs incurred in December (b) 740,490 Total manufacturing costs 833,500 833,500 Work in process inventory, December 1 167,750 275,820 Work in process inventory, December 31 141,540 (c) Cost of goods manufactured (c) 733,620 Finished goods inventory, December 1 147,660 128,180 Finished goods inventory, December 31 154,640 (d) Sales 1,287,830 1,144,500 Cost of goods sold (d) 740,490 Gross profit (e) (e) Operating expenses 167,750 (f) Net income (f) 254,080 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. $fill in the blank 901c4400101bfce_1 $fill in the blank 901c4400101bfce_2 b. $fill in the blank 901c4400101bfce_3 $fill in the blank 901c4400101bfce_4 c. $fill in the blank 901c4400101bfce_5 $fill in the blank 901c4400101bfce_6 d. $fill in the blank 901c4400101bfce_7 $fill in the blank 901c4400101bfce_8 e. $fill in the blank 901c4400101bfce_9 $fill in the blank 901c4400101bfce_10 f. $fill in the blank 901c4400101bfce_11 $fill in the blank 901c4400101bfce_12 Feedback 1. a. The cost of direct materials used in production includes the beginning materials inventory plus purchases, less the ending materials inventory. b. Total manufacturing costs incurred during December include direct materials, direct labor, and factory overhead. c. The cost of goods manufactured is beginning work in process plus total manufacturing costs less the ending work in process. d. The cost of goods sold is the beginning finished goods plus the cost of goods manufactured, less the ending finished goods. e. Sales minus cost of goods sold equals gross profit. f. Gross profit minus operating expenses equals net income. Use similar relationships from On Company to find the missing amounts for the Off Company items (a) through (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 $Work in process inventory, December 1 Direct materials: $Materials inventory, December 1 - Select - $- Select - - Select - $- Select - - Select - - Select - Total manufacturing costs incurred during December fill in the blank d43b45095fd5f8b_17 Total manufacturing costs $fill in the blank d43b45095fd5f8b_18 - Select - $- Select - Feedback 3. Prepare On Company's income statement for December. On Company Income Statement For the Month Ended December 31 $- Select - Cost of goods sold: $- Select - - Select - $- Select - - Select - - Select - $- Select - - Select - $- Select -

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 $87,370 $114,450 Materials inventory, December 31 (a) 129,330 Materials purchased 221,920 (a) Cost of direct materials used in production 234,150 (b) Direct labor 329,380 257,510 Factory overhead 102,220 128,180 Total manufacturing costs incurred in December (b) 740,490 Total manufacturing costs 833,500 833,500 Work in process inventory, December 1 167,750 275,820 Work in process inventory, December 31 141,540 (c) Cost of goods manufactured (c) 733,620 Finished goods inventory, December 1 147,660 128,180 Finished goods inventory, December 31 154,640 (d) Sales 1,287,830 1,144,500 Cost of goods sold (d) 740,490 Gross profit (e) (e) Operating expenses 167,750 (f) Net income (f) 254,080 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. $fill in the blank 901c4400101bfce_1 $fill in the blank 901c4400101bfce_2 b. $fill in the blank 901c4400101bfce_3 $fill in the blank 901c4400101bfce_4 c. $fill in the blank 901c4400101bfce_5 $fill in the blank 901c4400101bfce_6 d. $fill in the blank 901c4400101bfce_7 $fill in the blank 901c4400101bfce_8 e. $fill in the blank 901c4400101bfce_9 $fill in the blank 901c4400101bfce_10 f. $fill in the blank 901c4400101bfce_11 $fill in the blank 901c4400101bfce_12 Feedback 1. a. The cost of direct materials used in production includes the beginning materials inventory plus purchases, less the ending materials inventory. b. Total manufacturing costs incurred during December include direct materials, direct labor, and factory overhead. c. The cost of goods manufactured is beginning work in process plus total manufacturing costs less the ending work in process. d. The cost of goods sold is the beginning finished goods plus the cost of goods manufactured, less the ending finished goods. e. Sales minus cost of goods sold equals gross profit. f. Gross profit minus operating expenses equals net income. Use similar relationships from On Company to find the missing amounts for the Off Company items (a) through (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 $Work in process inventory, December 1 Direct materials: $Materials inventory, December 1 - Select - $- Select - - Select - $- Select - - Select - - Select - Total manufacturing costs incurred during December fill in the blank d43b45095fd5f8b_17 Total manufacturing costs $fill in the blank d43b45095fd5f8b_18 - Select - $- Select - Feedback 3. Prepare On Company's income statement for December. On Company Income Statement For the Month Ended December 31 $- Select - Cost of goods sold: $- Select - - Select - $- Select - - Select - - Select - $- Select - - Select - $- Select -

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 December:

	On Company	Off Company
Materials inventory, December 1	$87,370		$114,450
Materials inventory, December 31	(a)		129,330
Materials purchased	221,920		(a)
Cost of direct materials used in production	234,150		(b)
Direct labor	329,380		257,510
Factory overhead	102,220		128,180
Total manufacturing costs incurred in December	(b)		740,490
Total manufacturing costs	833,500		833,500
Work in process inventory, December 1	167,750		275,820
Work in process inventory, December 31	141,540		(c)
Cost of goods manufactured	(c)		733,620
Finished goods inventory, December 1	147,660		128,180
Finished goods inventory, December 31	154,640		(d)
Sales	1,287,830		1,144,500
Cost of goods sold	(d)		740,490
Gross profit	(e)		(e)
Operating expenses	167,750		(f)
Net income	(f)		254,080

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.	$fill in the blank 901c4400101bfce_1	$fill in the blank 901c4400101bfce_2
b.	$fill in the blank 901c4400101bfce_3	$fill in the blank 901c4400101bfce_4
c.	$fill in the blank 901c4400101bfce_5	$fill in the blank 901c4400101bfce_6
d.	$fill in the blank 901c4400101bfce_7	$fill in the blank 901c4400101bfce_8
e.	$fill in the blank 901c4400101bfce_9	$fill in the blank 901c4400101bfce_10
f.	$fill in the blank 901c4400101bfce_11	$fill in the blank 901c4400101bfce_12

Feedback

a. The cost of direct materials used in production includes the beginning materials inventory plus purchases, less the ending materials inventory.

b. Total manufacturing costs incurred during December include direct materials, direct labor, and factory overhead.

c. The cost of goods manufactured is beginning work in process plus total manufacturing costs less the ending work in process.

d. The cost of goods sold is the beginning finished goods plus the cost of goods manufactured, less the ending finished goods.

e. Sales minus cost of goods sold equals gross profit.

f. Gross profit minus operating expenses equals net income.

Use similar relationships from On Company to find the missing amounts for the Off Company items (a) through (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

			$Work in process inventory, December 1
Direct materials:
	$Materials inventory, December 1
	- Select -
	$- Select -
	- Select -
		$- Select -
		- Select -
		- Select -
Total manufacturing costs incurred during December			fill in the blank d43b45095fd5f8b_17
Total manufacturing costs			$fill in the blank d43b45095fd5f8b_18
			- Select -
			$- Select -

Feedback

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

On Company
Income Statement
For the Month Ended December 31

		$- Select -
Cost of goods sold:
	$- Select -
	- Select -
	$- Select -
	- Select -
		- Select -
		$- Select -
		- Select -
		$- Select -

Expert Solution

Step 1

Cost of goods manufactured statement shows total costs incurred on production and manufacturing of goods.

Direct materials used = beginning Materials Inventory + Materials purchased - Ending materials inventory

Total manufacturing costs incurred = DIrect materials used + Direct Labour + Factory overhead

Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory - Ending work in process inventory/

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