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 $280,280.00 $179,000.00 3 Materials inventory, May 31 (a) 177,500.00 4 Materials purchased 712,000.00 340,000.00 5 Cost of direct materials used in production 752,000.00 (a) 6 Direct labor 1,059,600.00 (b) 7 Factory overhead 325,200.00 179,600.00 8 Total manufacturing costs incurred in May (b) 1,035,000.00 9 Total manufacturing costs 2,676,800.00 1,479,500.00 10 Work in process inventory, May 1 540,000.00 444,500.00 11 Work in process inventory, May 31 451,400.00 (c) 12 Cost of goods manufactured (c) 1,027,500.00 13 Finished goods inventory, May 1 478,400.00 201,000.00 14 Finished goods inventory, May 31 495,200.00 (d) 15 Sales 4,143,000.00 1,676,500.00 16 Cost of goods sold (d) 1,053,500.00 17 Gross profit (e) (e) 18 Operating expenses 540,000.00 (f) 19 Net income (f) 383,000.00 Required: a. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers. b. Prepare Yakima Company’s statement of cost of goods manufactured for May. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign c. Prepare Yakima Company’s income statement for May. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive.

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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Labels
For the Month Ended May 31
For the Year Ended May 31
Amount Descriptions
Cost of direct materials used in production
Cost of finished goods available for sale
Cost of goods manufactured
Cost of goods sold
Cost of materials available for use
Direct labor
Factory overhead
Finished goods inventory, May 1
Finished goods inventory, May 31
Gross profit
Materials inventory, May 1
Materials inventory, May 31
Net income
Net loss
Operating expenses
Purchases
Sales
Total manufacturing costs incurred in May
Total manufacturing costs
Work in process inventory, May 1
Work in process inventory, May 31

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	$280,280.00	$179,000.00
3	Materials inventory, May 31	(a)	177,500.00
4	Materials purchased	712,000.00	340,000.00
5	Cost of direct materials used in production	752,000.00	(a)
6	Direct labor	1,059,600.00	(b)
7	Factory overhead	325,200.00	179,600.00
8	Total manufacturing costs incurred in May	(b)	1,035,000.00
9	Total manufacturing costs	2,676,800.00	1,479,500.00
10	Work in process inventory, May 1	540,000.00	444,500.00
11	Work in process inventory, May 31	451,400.00	(c)
12	Cost of goods manufactured	(c)	1,027,500.00
13	Finished goods inventory, May 1	478,400.00	201,000.00
14	Finished goods inventory, May 31	495,200.00	(d)
15	Sales	4,143,000.00	1,676,500.00
16	Cost of goods sold	(d)	1,053,500.00
17	Gross profit	(e)	(e)
18	Operating expenses	540,000.00	(f)
19	Net income	(f)	383,000.00

	Required:
	a. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
	b. Prepare Yakima Company’s statement of cost of goods manufactured for May. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign
	c. Prepare Yakima Company’s income statement for May. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive.

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