Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May: Rainier Company Yakima CompanyMaterials inventory, May 1 $ 100,000 $ 48,200Materials inventory, May 31 (a) 50,000Materials purchased 950,000 710,000Cost of direct materials used in production 938,500 (a)Direct labor 2,860,000 (b)Factory overhead 1,800,000 446,000Total manufacturing costs incurred in May (b) 2,484,200Total manufacturing costs 5,998,500 2,660,600Work in process inventory, May 1 400,000 176,400Work in process inventory, May 31 382,000 (c)Cost of goods manufactured (c) 2,491,500Finished goods inventory, May 1 615,000 190,000Finished goods inventory, May 31 596,500 (d)Sales 9,220,000 4,550,000Cost of goods sold (d) 2,470,000Gross profit (e) (e)Operating expenses 1,000,000 (f)Net income (f) 1,500,000Instructions For both companies, determine the amounts of the missing items (a) through (f), identifying them by letter. HIDE ANSWERCheck Figure: b. Yakima Company, $1,330,000 Prepare Yakima Company’s statement of cost of goods manufactured for May. Prepare Yakima Company’s income statement for May.
Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May:
Rainier Company Yakima Company
Materials inventory, May 1 $ 100,000 $ 48,200
Materials inventory, May 31 (a) 50,000
Materials purchased 950,000 710,000
Cost of direct materials used in production 938,500 (a)
Direct labor 2,860,000 (b)
Factory overhead 1,800,000 446,000
Total manufacturing costs incurred in May (b) 2,484,200
Total manufacturing costs 5,998,500 2,660,600
Work in process inventory, May 1 400,000 176,400
Work in process inventory, May 31 382,000 (c)
Cost of goods manufactured (c) 2,491,500
Finished goods inventory, May 1 615,000 190,000
Finished goods inventory, May 31 596,500 (d)
Sales 9,220,000 4,550,000
Cost of goods sold (d) 2,470,000
Gross profit (e) (e)
Operating expenses 1,000,000 (f)
Net income (f) 1,500,000
Instructions
For both companies, determine the amounts of the missing items (a) through (f), identifying them by letter.
HIDE ANSWER
Check Figure: b. Yakima Company, $1,330,000
Prepare Yakima Company’s statement of cost of goods manufactured for May.
Prepare Yakima Company’s income statement for May.
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