Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December.Please see the attachmentInstructions1. Determine the amounts of the missing items, identifying them by letter.2. Prepare On Company’s statement of cost of goods manufactured for December.3. Prepare On Company’s income statement for December. OnCompanyOffCompany$ 195,300$ 65,800Materials inventory, December 1Materials inventory, December 31Materials purchasedCost of direct materials used in production(a)91,140282,800(a)(b)317,800Direct labor577,220387,800Factory overheadTotal manufacturing costs incurred in DecemberTotal manufacturing costsWork in process inventory, December 1Work in process inventory, December 31Cost of goods manufacturedFinished goods inventory, December 1Finished goods inventory, December 31256,060148,400(b)1,519,0001,727,320973,000119,000208,320172,200(c)1,532,020(c)$ 224,000$ 269,080(d)197,400Sales1,127,0001,944,320Cost of goods soldGross profitOperating expenses(d)1,545,040(e)(e)(f)117,600(f)Net income164,920

Cost of goods manufactured: Cost of goods manufactured refers to the costs incurred for…

Answered: On Company Off Company $ 195,300 $…

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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Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December.
Please see the attachment
Instructions
1. Determine the amounts of the missing items, identifying them by letter.
2. Prepare On Company’s statement of cost of goods manufactured for December.
3. Prepare On Company’s income statement for December.

On
Company
Off
Company
$ 195,300
$ 65,800
Materials inventory, December 1
Materials inventory, December 31
Materials purchased
Cost of direct materials used in production
(a)
91,140
282,800
(a)
(b)
317,800
Direct labor
577,220
387,800
Factory overhead
Total manufacturing costs incurred in December
Total manufacturing costs
Work in process inventory, December 1
Work in process inventory, December 31
Cost of goods manufactured
Finished goods inventory, December 1
Finished goods inventory, December 31
256,060
148,400
(b)
1,519,000
1,727,320
973,000
119,000
208,320
172,200
(c)
1,532,020
(c)
$ 224,000
$ 269,080
(d)
197,400
Sales
1,127,000
1,944,320
Cost of goods sold
Gross profit
Operating expenses
(d)
1,545,040
(e)
(e)
(f)
117,600
(f)
Net income
164,920

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