Several items are omitted from the income statement and cost of goodsmanufactured statement data for two different companies for the monthof December: Instructions1. For both companies, determine the amounts of the missingitems (a) through (f), identifying them by letter.2. Prepare Yakima Company's statement of cost of goodsmanufactured for December.3. Prepare Yakima Company's income statement for December. RainlerYakimaCompany$ 100,000Company$ 48,200Materials inventory, May 1Materials inventory, May 31Materials purchasedCost of direct materials used in production(a)50,000950,000938,500710,000(a)(b)446,000Direct labor2,860,0001,800,000(b)5,998,500Factory overheadTotal manufacturing costs incurred in MayTotal manufacturing costsWork in process inventory, May 1Work in process inventory, May 31Cost of goods manufacturedFinished goods inventory, May 1Finished goods inventory, May 31Sales2,484,2002,660,600400,000176,400382,000(c)(c)615,000596,5009,220,000(d)2,491,500190,000(d)4,550,000Cost of goods soldGross profitOperating expenses2,470,000(e)(e)(f)1,000,000(f)Net income1,500,000

Cost of goods manufactured in the business shows total costs to be incurred on production and…

Answered: Several items are omitted from the…

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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Several items are omitted from the income statement and cost of goods
manufactured statement data for two different companies for the month
of December:

Instructions
1. For both companies, determine the amounts of the missing
items (a) through (f), identifying them by letter.
2. Prepare Yakima Company's statement of cost of goods
manufactured for December.
3. Prepare Yakima Company's income statement for December.

Rainler
Yakima
Company
$ 100,000
Company
$ 48,200
Materials inventory, May 1
Materials inventory, May 31
Materials purchased
Cost of direct materials used in production
(a)
50,000
950,000
938,500
710,000
(a)
(b)
446,000
Direct labor
2,860,000
1,800,000
(b)
5,998,500
Factory overhead
Total manufacturing costs incurred in May
Total manufacturing costs
Work in process inventory, May 1
Work in process inventory, May 31
Cost of goods manufactured
Finished goods inventory, May 1
Finished goods inventory, May 31
Sales
2,484,200
2,660,600
400,000
176,400
382,000
(c)
(c)
615,000
596,500
9,220,000
(d)
2,491,500
190,000
(d)
4,550,000
Cost of goods sold
Gross profit
Operating expenses
2,470,000
(e)
(e)
(f)
1,000,000
(f)
Net income
1,500,000

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