Manufacturing income statement, statement of cost of goods manufacturedSeveral items are omitted from the income statement and cost of goodsmanufactured statement data for two different companies for the monthof December. Instructions1. Determine the amounts of the missing items, identifying them byletter.2. Prepare On Company's statement of cost of goods manufactured forDecember.3. Prepare On Company's income statement for December. OnOffCompany CompanyMaterials inventory. December 1$ 65,800$ 195,300Materials inventory. December 31(a)91,140Materials purchased282,800(a)Cost of direct materials used in production317,800(b)Direct labor387,800577,220Factory overhead148,400256,060Total manufacturing costs incurred in(b)1,519,000DecemberTotal manufacturing costs973,0001,727,320Work in process inventory, December 1119,000208,320Work in process inventory, December 31172,200(c)Cost of goods manufactured(c)1,532,020Finished goods inventory, December 1$ 224,000 s 269,080Finished goods inventory. December 31197,400(d)Sales1,127,000 1,944,320Cost of goods sold(d)1,545,040Gross profit(e)(e)Operating expenses117,600(f)Net income(f)164,920

Cost of goods sold is the amount that represents the cost incurred on the goods that are sold during…

Answered: On Off Company Company Materials…

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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Manufacturing income statement, statement of cost of goods manufactured

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. Determine the amounts of the missing items, identifying them by
letter.

2. Prepare On Company's statement of cost of goods manufactured for
December.
3. Prepare On Company's income statement for December.

On
Off
Company Company
Materials inventory. December 1
$ 65,800
$ 195,300
Materials inventory. December 31
(a)
91,140
Materials purchased
282,800
(a)
Cost of direct materials used in production
317,800
(b)
Direct labor
387,800
577,220
Factory overhead
148,400
256,060
Total manufacturing costs incurred in
(b)
1,519,000
December
Total manufacturing costs
973,000
1,727,320
Work in process inventory, December 1
119,000
208,320
Work in process inventory, December 31
172,200
(c)
Cost of goods manufactured
(c)
1,532,020
Finished goods inventory, December 1
$ 224,000 s 269,080
Finished goods inventory. December 31
197,400
(d)
Sales
1,127,000 1,944,320
Cost of goods sold
(d)
1,545,040
Gross profit
(e)
(e)
Operating expenses
117,600
(f)
Net income
(f)
164,920

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