Problem 2. Statement of Costs of Goods Manufactured and Income statement. The following information are gathered from the accounting records of Genet Inc. for the current month: Inventory information Beginning balance $ Ending balance $ Raw materials inventory $46,800 $43,600 Work-in-Process inventory $33,400 $35,700 Finished goods inventory $42,500 $31,800 Other information $ Revenue $800,000 Purchase of raw materials $72,100 Indirect materials costs $5,600 Indirect labor costs $20,000 Office staff salaries $28,000 Office equipment depreciation $2,000 Factory machinery maintenance costs $5,000 Environmental compliance costs - factory $1,200 Direct labor - Wages of production line workers $32,000 Sales staff salaries $12,000 Advertising costs $8,000 Miscellaneous manufacturing overhead costs $11,000 Required: a. Compute the direct materials costs placed into the production process. Solution: a. Direct materials placed in the production process Beginning raw materials Purchase of raw materials Raw materials available for use Ending raw materails Use of raw materials Indirect materials used Direct materials used

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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Problem 2. Statement of Costs of Goods Manufactured and Income statement.
The following information are gathered from the accounting records of Genet Inc. for the current month:

	Inventory information	Beginning balance $	Ending balance $
	Raw materials inventory	$46,800	$43,600
	Work-in-Process inventory	$33,400	$35,700
	Finished goods inventory	$42,500	$31,800

	Other information	$
	Revenue	$800,000
	Purchase of raw materials	$72,100
	Indirect materials costs	$5,600
	Indirect labor costs	$20,000
	Office staff salaries	$28,000
	Office equipment depreciation	$2,000
	Factory machinery maintenance costs	$5,000
	Environmental compliance costs - factory	$1,200
	Direct labor - Wages of production line workers	$32,000
	Sales staff salaries	$12,000
	Advertising costs	$8,000
	Miscellaneous manufacturing overhead costs	$11,000

Required:	a. Compute the direct materials costs placed into the production process.





Solution:
a.	Direct materials placed in the production process
	Beginning raw materials
	Purchase of raw materials
	Raw materials available for use
	Ending raw materails
	Use of raw materials
	Indirect materials used
	Direct materials used

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