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 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. 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. Enter all amounts as positive numbers.* *Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

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

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

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. 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. Enter all amounts as positive numbers.*
*Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

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