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 $281,960.00 $177,500.00 3 Materials inventory, May 31 (a) 175,500.00 4 Materials purchased 713,600.00 341,100.00 5 Cost of direct materials used in production 752,000.00 (a) 6 Direct labor 1,060,000.00 (b) 7 Factory overhead 327,800.00 179,000.00 8 Total manufacturing costs incurred in May (b) 1,036,000.00 9 Total manufacturing costs 2,681,600.00 1,479,000.00 10 Work in process inventory, May 1 541,800.00 443,000.00 11 Work in process inventory, May 31 450,800.00 (c) 12 Cost of goods manufactured (c) 1,024,500.00 13 Finished goods inventory, May 1 479,800.00 204,500.00 14 Finished goods inventory, May 31 495,400.00 (d) 15 Sales 4,144,000.00 1,677,000.00 16 Cost of goods sold (d) 1,052,000.00 17 Gross profit (e) (e) 18 Operating expenses 543,000.00 (f) 19 Net income (f) 380,700.00 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. 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. X Starting Question 1 Rainier Company Yakima Company 2 Materials inventory, May 1 $281,960.00 $177,500.00 3 Materials inventory, May 31 (a) 175,500.00 4 Materials purchased 713,600.00 341,100.00 5 Cost of direct materials used in production 752,000.00 (a) 6 Direct labor 1,060,000.00 (b) 7 Factory overhead 327,800.00 179,000.00 8 Total manufacturing costs incurred in May (b) 1,036,000.00 9 Total manufacturing costs 2,681,600.00 1,479,000.00 10 Work in process inventory, May 1 541,800.00 443,000.00 11 Work in process inventory, May 31 450,800.00 (c) 12 Cost of goods manufactured (c) 1,024,500.00 13 Finished goods inventory, May 1 479,800.00 204,500.00 14 Finished goods inventory, May 31 495,400.00 (d) 15 Sales 4,144,000.00 1,677,000.00 16 Cost of goods sold (d) 1,052,000.00 17 Gross profit (e) (e) 18 Operating expenses 543,000.00 (f) 19 Net income (f) 380,700.00

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 $281,960.00 $177,500.00 3 Materials inventory, May 31 (a) 175,500.00 4 Materials purchased 713,600.00 341,100.00 5 Cost of direct materials used in production 752,000.00 (a) 6 Direct labor 1,060,000.00 (b) 7 Factory overhead 327,800.00 179,000.00 8 Total manufacturing costs incurred in May (b) 1,036,000.00 9 Total manufacturing costs 2,681,600.00 1,479,000.00 10 Work in process inventory, May 1 541,800.00 443,000.00 11 Work in process inventory, May 31 450,800.00 (c) 12 Cost of goods manufactured (c) 1,024,500.00 13 Finished goods inventory, May 1 479,800.00 204,500.00 14 Finished goods inventory, May 31 495,400.00 (d) 15 Sales 4,144,000.00 1,677,000.00 16 Cost of goods sold (d) 1,052,000.00 17 Gross profit (e) (e) 18 Operating expenses 543,000.00 (f) 19 Net income (f) 380,700.00 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. 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. X Starting Question 1 Rainier Company Yakima Company 2 Materials inventory, May 1 $281,960.00 $177,500.00 3 Materials inventory, May 31 (a) 175,500.00 4 Materials purchased 713,600.00 341,100.00 5 Cost of direct materials used in production 752,000.00 (a) 6 Direct labor 1,060,000.00 (b) 7 Factory overhead 327,800.00 179,000.00 8 Total manufacturing costs incurred in May (b) 1,036,000.00 9 Total manufacturing costs 2,681,600.00 1,479,000.00 10 Work in process inventory, May 1 541,800.00 443,000.00 11 Work in process inventory, May 31 450,800.00 (c) 12 Cost of goods manufactured (c) 1,024,500.00 13 Finished goods inventory, May 1 479,800.00 204,500.00 14 Finished goods inventory, May 31 495,400.00 (d) 15 Sales 4,144,000.00 1,677,000.00 16 Cost of goods sold (d) 1,052,000.00 17 Gross profit (e) (e) 18 Operating expenses 543,000.00 (f) 19 Net income (f) 380,700.00

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:

1		Rainier Company	Yakima Company
2	Materials inventory, May 1	$281,960.00	$177,500.00
3	Materials inventory, May 31	(a)	175,500.00
4	Materials purchased	713,600.00	341,100.00
5	Cost of direct materials used in production	752,000.00	(a)
6	Direct labor	1,060,000.00	(b)
7	Factory overhead	327,800.00	179,000.00
8	Total manufacturing costs incurred in May	(b)	1,036,000.00
9	Total manufacturing costs	2,681,600.00	1,479,000.00
10	Work in process inventory, May 1	541,800.00	443,000.00
11	Work in process inventory, May 31	450,800.00	(c)
12	Cost of goods manufactured	(c)	1,024,500.00
13	Finished goods inventory, May 1	479,800.00	204,500.00
14	Finished goods inventory, May 31	495,400.00	(d)
15	Sales	4,144,000.00	1,677,000.00
16	Cost of goods sold	(d)	1,052,000.00
17	Gross profit	(e)	(e)
18	Operating expenses	543,000.00	(f)
19	Net income	(f)	380,700.00

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. 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.

Starting Question

1		Rainier Company	Yakima Company
2	Materials inventory, May 1	$281,960.00	$177,500.00
3	Materials inventory, May 31	(a)	175,500.00
4	Materials purchased	713,600.00	341,100.00
5	Cost of direct materials used in production	752,000.00	(a)
6	Direct labor	1,060,000.00	(b)
7	Factory overhead	327,800.00	179,000.00
8	Total manufacturing costs incurred in May	(b)	1,036,000.00
9	Total manufacturing costs	2,681,600.00	1,479,000.00
10	Work in process inventory, May 1	541,800.00	443,000.00
11	Work in process inventory, May 31	450,800.00	(c)
12	Cost of goods manufactured	(c)	1,024,500.00
13	Finished goods inventory, May 1	479,800.00	204,500.00
14	Finished goods inventory, May 31	495,400.00	(d)
15	Sales	4,144,000.00	1,677,000.00
16	Cost of goods sold	(d)	1,052,000.00
17	Gross profit	(e)	(e)
18	Operating expenses	543,000.00	(f)
19	Net income	(f)	380,700.00

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. 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.

Amount Descriptions

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
Operating expenses
Purchases
Sales
Total manufacturing costs incurred in May
Work in process inventory, May 1
Work in process inventory, May 31

Starting Question

a. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

Letter	Rainier Company	Yakima Company
a.
b.
c.
d.
e.
f.

b. Prepare Yakima Company’s statement of cost of goods manufactured for May. Refer to the Amount Descriptions list 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

Yakima Company

Statement of Cost of Goods Manufactured

For the Month Ended May 31

1
2	Direct materials:
3
4
5
6
7
8
9
10
11	Total manufacturing costs
12
13

c. Prepare Yakima Company’s income statement for May. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers.

Yakima Company

Income Statement

For the Month Ended May 31

1
2	Cost of goods sold:
3
4
5
6
7
8
9
10

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