The Schedule of Cost of Goods Manufactured

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 18, Problem 3BPSB

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3BPSB

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 864,320
Direct Labor		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs		$ 391,775
Total Manufacturing Cost		$ 1,818,595
Work in process , December 31, 2014		$ 12,500
Work in process , December 31, 2015		$ 14,100
Cost of Goods Manufactured		$ 1,816,995

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 894,375
Raw Materials, December 31, 2014 (B)	$ 40,375
Raw Materials, December 31, 2015 (C)	$ 70,430
Raw Material Used (D) = A+B-C		$ 864,320
Direct Labor (E)		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs (F)		$ 391,775
Total Manufacturing Cost (G) =D+E+F		$ 1,818,595
Work in process , December 31, 2014 (H)		$ 12,500
Work in process , December 31, 2015 (I)		$ 14,100
Cost of Goods Manufactured (H) = G+H-I		$ 1,816,995

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3BPSB

Solution: The Income Statement for the year 2015 is as follows:

Best Bikes
Income Statement
For the year 2015

Sales		$ 4,942,625
Cost of Goods Sold		$ 1,852,445
Gross Profit		$ 3,090,180

Selling Expenses:
Advertising Expenses	$ 20,250
Depreciation Expense-Selling Equipment	$ 10,125
Rent Expense-Selling Space	$ 27,000
Sales Salaries Expense	$ 295,300
Total Selling Expenses		$ 352,675

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 8,440
Office Salaries Expense	$ 70,875
Rent Expense-Office Space	$ 23,625
Total General and Administrative Expenses		$ 102,940

Net Income before Taxes		$ 249,735
Taxes		$ 136,700
Net Income		$ 113,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Best Bikes
Income Statement
For the year 2015

Sales (A)		$ 4,942,625
Cost of Goods Sold (B)		$ 1,852,445
Gross Profit (C) = A-B =		$ 3,090,180

Selling Expenses:
Advertising Expenses	$ 20,250
Depreciation Expense-Selling Equipment	$ 10,125
Rent Expense-Selling Space	$ 27,000
Sales Salaries Expense	$ 295,300
Total Selling Expenses (D)		$ 352,675

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 8,440
Office Salaries Expense	$ 70,875
Rent Expense-Office Space	$ 23,625
Total General and Administrative Expenses (E)		$ 102,940

Net Income before Taxes (F) = C-D-E =		$ 249,735
Taxes (G)		$ 136,700
Net Income (F-G)		$ 113,035

Working note:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 894,375
Raw Materials, December 31, 2014 (B)	$ 40,375
Raw Materials, December 31, 2015 (C)	$ 70,430
Raw Material Used (D) = A+B-C		$ 864,320
Direct Labor (E)		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs (F)		$ 391,775
Total Manufacturing Cost (G) =D+E+F		$ 1,818,595
Work in process , December 31, 2014 (H)		$ 12,500
Work in process , December 31, 2015 (I)		$ 14,100
Cost of Goods Manufactured (H) = G+H-I		$ 1,816,995

Cost of Goods Manufactured (H)		$ 1,816,995
Finished Goods , December 31, 2014 (I)		$ 177,200
Finished Goods , December 31, 2015 (J)		$ 141,750
Cost of Goods Sold (K) =H+I-J		$ 1,852,445

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Question

ANSWER

Don't want wrong answer

Answer 2

Question

Chapter 18, Problem 3BPSB

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3BPSB

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 864,320
Direct Labor		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs		$ 391,775
Total Manufacturing Cost		$ 1,818,595
Work in process , December 31, 2014		$ 12,500
Work in process , December 31, 2015		$ 14,100
Cost of Goods Manufactured		$ 1,816,995

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 894,375
Raw Materials, December 31, 2014 (B)	$ 40,375
Raw Materials, December 31, 2015 (C)	$ 70,430
Raw Material Used (D) = A+B-C		$ 864,320
Direct Labor (E)		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs (F)		$ 391,775
Total Manufacturing Cost (G) =D+E+F		$ 1,818,595
Work in process , December 31, 2014 (H)		$ 12,500
Work in process , December 31, 2015 (I)		$ 14,100
Cost of Goods Manufactured (H) = G+H-I		$ 1,816,995

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3BPSB

Solution: The Income Statement for the year 2015 is as follows:

Best Bikes
Income Statement
For the year 2015

Sales		$ 4,942,625
Cost of Goods Sold		$ 1,852,445
Gross Profit		$ 3,090,180

Selling Expenses:
Advertising Expenses	$ 20,250
Depreciation Expense-Selling Equipment	$ 10,125
Rent Expense-Selling Space	$ 27,000
Sales Salaries Expense	$ 295,300
Total Selling Expenses		$ 352,675

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 8,440
Office Salaries Expense	$ 70,875
Rent Expense-Office Space	$ 23,625
Total General and Administrative Expenses		$ 102,940

Net Income before Taxes		$ 249,735
Taxes		$ 136,700
Net Income		$ 113,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Best Bikes
Income Statement
For the year 2015

Sales (A)		$ 4,942,625
Cost of Goods Sold (B)		$ 1,852,445
Gross Profit (C) = A-B =		$ 3,090,180

Selling Expenses:
Advertising Expenses	$ 20,250
Depreciation Expense-Selling Equipment	$ 10,125
Rent Expense-Selling Space	$ 27,000
Sales Salaries Expense	$ 295,300
Total Selling Expenses (D)		$ 352,675

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 8,440
Office Salaries Expense	$ 70,875
Rent Expense-Office Space	$ 23,625
Total General and Administrative Expenses (E)		$ 102,940

Net Income before Taxes (F) = C-D-E =		$ 249,735
Taxes (G)		$ 136,700
Net Income (F-G)		$ 113,035

Working note:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 894,375
Raw Materials, December 31, 2014 (B)	$ 40,375
Raw Materials, December 31, 2015 (C)	$ 70,430
Raw Material Used (D) = A+B-C		$ 864,320
Direct Labor (E)		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs (F)		$ 391,775
Total Manufacturing Cost (G) =D+E+F		$ 1,818,595
Work in process , December 31, 2014 (H)		$ 12,500
Work in process , December 31, 2015 (I)		$ 14,100
Cost of Goods Manufactured (H) = G+H-I		$ 1,816,995

Cost of Goods Manufactured (H)		$ 1,816,995
Finished Goods , December 31, 2014 (I)		$ 177,200
Finished Goods , December 31, 2015 (J)		$ 141,750
Cost of Goods Sold (K) =H+I-J		$ 1,852,445

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 18, Problem 3BPSB

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3BPSB

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 864,320
Direct Labor		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs		$ 391,775
Total Manufacturing Cost		$ 1,818,595
Work in process , December 31, 2014		$ 12,500
Work in process , December 31, 2015		$ 14,100
Cost of Goods Manufactured		$ 1,816,995

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 894,375
Raw Materials, December 31, 2014 (B)	$ 40,375
Raw Materials, December 31, 2015 (C)	$ 70,430
Raw Material Used (D) = A+B-C		$ 864,320
Direct Labor (E)		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs (F)		$ 391,775
Total Manufacturing Cost (G) =D+E+F		$ 1,818,595
Work in process , December 31, 2014 (H)		$ 12,500
Work in process , December 31, 2015 (I)		$ 14,100
Cost of Goods Manufactured (H) = G+H-I		$ 1,816,995

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3BPSB

Solution: The Income Statement for the year 2015 is as follows:

Best Bikes
Income Statement
For the year 2015

Sales		$ 4,942,625
Cost of Goods Sold		$ 1,852,445
Gross Profit		$ 3,090,180

Selling Expenses:
Advertising Expenses	$ 20,250
Depreciation Expense-Selling Equipment	$ 10,125
Rent Expense-Selling Space	$ 27,000
Sales Salaries Expense	$ 295,300
Total Selling Expenses		$ 352,675

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 8,440
Office Salaries Expense	$ 70,875
Rent Expense-Office Space	$ 23,625
Total General and Administrative Expenses		$ 102,940

Net Income before Taxes		$ 249,735
Taxes		$ 136,700
Net Income		$ 113,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Best Bikes
Income Statement
For the year 2015

Sales (A)		$ 4,942,625
Cost of Goods Sold (B)		$ 1,852,445
Gross Profit (C) = A-B =		$ 3,090,180

Selling Expenses:
Advertising Expenses	$ 20,250
Depreciation Expense-Selling Equipment	$ 10,125
Rent Expense-Selling Space	$ 27,000
Sales Salaries Expense	$ 295,300
Total Selling Expenses (D)		$ 352,675

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 8,440
Office Salaries Expense	$ 70,875
Rent Expense-Office Space	$ 23,625
Total General and Administrative Expenses (E)		$ 102,940

Net Income before Taxes (F) = C-D-E =		$ 249,735
Taxes (G)		$ 136,700
Net Income (F-G)		$ 113,035

Working note:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 894,375
Raw Materials, December 31, 2014 (B)	$ 40,375
Raw Materials, December 31, 2015 (C)	$ 70,430
Raw Material Used (D) = A+B-C		$ 864,320
Direct Labor (E)		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs (F)		$ 391,775
Total Manufacturing Cost (G) =D+E+F		$ 1,818,595
Work in process , December 31, 2014 (H)		$ 12,500
Work in process , December 31, 2015 (I)		$ 14,100
Cost of Goods Manufactured (H) = G+H-I		$ 1,816,995

Cost of Goods Manufactured (H)		$ 1,816,995
Finished Goods , December 31, 2014 (I)		$ 177,200
Finished Goods , December 31, 2015 (J)		$ 141,750
Cost of Goods Sold (K) =H+I-J		$ 1,852,445

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 18, Problem 3BPSB

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3BPSB

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 864,320
Direct Labor		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs		$ 391,775
Total Manufacturing Cost		$ 1,818,595
Work in process , December 31, 2014		$ 12,500
Work in process , December 31, 2015		$ 14,100
Cost of Goods Manufactured		$ 1,816,995

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 894,375
Raw Materials, December 31, 2014 (B)	$ 40,375
Raw Materials, December 31, 2015 (C)	$ 70,430
Raw Material Used (D) = A+B-C		$ 864,320
Direct Labor (E)		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs (F)		$ 391,775
Total Manufacturing Cost (G) =D+E+F		$ 1,818,595
Work in process , December 31, 2014 (H)		$ 12,500
Work in process , December 31, 2015 (I)		$ 14,100
Cost of Goods Manufactured (H) = G+H-I		$ 1,816,995

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3BPSB

Solution: The Income Statement for the year 2015 is as follows:

Best Bikes
Income Statement
For the year 2015

Sales		$ 4,942,625
Cost of Goods Sold		$ 1,852,445
Gross Profit		$ 3,090,180

Selling Expenses:
Advertising Expenses	$ 20,250
Depreciation Expense-Selling Equipment	$ 10,125
Rent Expense-Selling Space	$ 27,000
Sales Salaries Expense	$ 295,300
Total Selling Expenses		$ 352,675

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 8,440
Office Salaries Expense	$ 70,875
Rent Expense-Office Space	$ 23,625
Total General and Administrative Expenses		$ 102,940

Net Income before Taxes		$ 249,735
Taxes		$ 136,700
Net Income		$ 113,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Best Bikes
Income Statement
For the year 2015

Sales (A)		$ 4,942,625
Cost of Goods Sold (B)		$ 1,852,445
Gross Profit (C) = A-B =		$ 3,090,180

Selling Expenses:
Advertising Expenses	$ 20,250
Depreciation Expense-Selling Equipment	$ 10,125
Rent Expense-Selling Space	$ 27,000
Sales Salaries Expense	$ 295,300
Total Selling Expenses (D)		$ 352,675

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 8,440
Office Salaries Expense	$ 70,875
Rent Expense-Office Space	$ 23,625
Total General and Administrative Expenses (E)		$ 102,940

Net Income before Taxes (F) = C-D-E =		$ 249,735
Taxes (G)		$ 136,700
Net Income (F-G)		$ 113,035

Working note:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 894,375
Raw Materials, December 31, 2014 (B)	$ 40,375
Raw Materials, December 31, 2015 (C)	$ 70,430
Raw Material Used (D) = A+B-C		$ 864,320
Direct Labor (E)		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs (F)		$ 391,775
Total Manufacturing Cost (G) =D+E+F		$ 1,818,595
Work in process , December 31, 2014 (H)		$ 12,500
Work in process , December 31, 2015 (I)		$ 14,100
Cost of Goods Manufactured (H) = G+H-I		$ 1,816,995

Cost of Goods Manufactured (H)		$ 1,816,995
Finished Goods , December 31, 2014 (I)		$ 177,200
Finished Goods , December 31, 2015 (J)		$ 141,750
Cost of Goods Sold (K) =H+I-J		$ 1,852,445

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 18, Problem 3BPSB

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3BPSB

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 864,320
Direct Labor		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs		$ 391,775
Total Manufacturing Cost		$ 1,818,595
Work in process , December 31, 2014		$ 12,500
Work in process , December 31, 2015		$ 14,100
Cost of Goods Manufactured		$ 1,816,995

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 894,375
Raw Materials, December 31, 2014 (B)	$ 40,375
Raw Materials, December 31, 2015 (C)	$ 70,430
Raw Material Used (D) = A+B-C		$ 864,320
Direct Labor (E)		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs (F)		$ 391,775
Total Manufacturing Cost (G) =D+E+F		$ 1,818,595
Work in process , December 31, 2014 (H)		$ 12,500
Work in process , December 31, 2015 (I)		$ 14,100
Cost of Goods Manufactured (H) = G+H-I		$ 1,816,995

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3BPSB

Solution: The Income Statement for the year 2015 is as follows:

Best Bikes
Income Statement
For the year 2015

Sales		$ 4,942,625
Cost of Goods Sold		$ 1,852,445
Gross Profit		$ 3,090,180

Selling Expenses:
Advertising Expenses	$ 20,250
Depreciation Expense-Selling Equipment	$ 10,125
Rent Expense-Selling Space	$ 27,000
Sales Salaries Expense	$ 295,300
Total Selling Expenses		$ 352,675

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 8,440
Office Salaries Expense	$ 70,875
Rent Expense-Office Space	$ 23,625
Total General and Administrative Expenses		$ 102,940

Net Income before Taxes		$ 249,735
Taxes		$ 136,700
Net Income		$ 113,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Best Bikes
Income Statement
For the year 2015

Sales (A)		$ 4,942,625
Cost of Goods Sold (B)		$ 1,852,445
Gross Profit (C) = A-B =		$ 3,090,180

Selling Expenses:
Advertising Expenses	$ 20,250
Depreciation Expense-Selling Equipment	$ 10,125
Rent Expense-Selling Space	$ 27,000
Sales Salaries Expense	$ 295,300
Total Selling Expenses (D)		$ 352,675

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 8,440
Office Salaries Expense	$ 70,875
Rent Expense-Office Space	$ 23,625
Total General and Administrative Expenses (E)		$ 102,940

Net Income before Taxes (F) = C-D-E =		$ 249,735
Taxes (G)		$ 136,700
Net Income (F-G)		$ 113,035

Working note:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 894,375
Raw Materials, December 31, 2014 (B)	$ 40,375
Raw Materials, December 31, 2015 (C)	$ 70,430
Raw Material Used (D) = A+B-C		$ 864,320
Direct Labor (E)		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs (F)		$ 391,775
Total Manufacturing Cost (G) =D+E+F		$ 1,818,595
Work in process , December 31, 2014 (H)		$ 12,500
Work in process , December 31, 2015 (I)		$ 14,100
Cost of Goods Manufactured (H) = G+H-I		$ 1,816,995

Cost of Goods Manufactured (H)		$ 1,816,995
Finished Goods , December 31, 2014 (I)		$ 177,200
Finished Goods , December 31, 2015 (J)		$ 141,750
Cost of Goods Sold (K) =H+I-J		$ 1,852,445

Answer 6

Chapter 18, Problem 3BPSB

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3BPSB

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 864,320
Direct Labor		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs		$ 391,775
Total Manufacturing Cost		$ 1,818,595
Work in process , December 31, 2014		$ 12,500
Work in process , December 31, 2015		$ 14,100
Cost of Goods Manufactured		$ 1,816,995

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 894,375
Raw Materials, December 31, 2014 (B)	$ 40,375
Raw Materials, December 31, 2015 (C)	$ 70,430
Raw Material Used (D) = A+B-C		$ 864,320
Direct Labor (E)		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs (F)		$ 391,775
Total Manufacturing Cost (G) =D+E+F		$ 1,818,595
Work in process , December 31, 2014 (H)		$ 12,500
Work in process , December 31, 2015 (I)		$ 14,100
Cost of Goods Manufactured (H) = G+H-I		$ 1,816,995

Answer 7

Chapter 18, Problem 3BPSB

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Answer 8

Requirement-1:

Expert Solution

Answer to Problem 3BPSB

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 864,320
Direct Labor		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs		$ 391,775
Total Manufacturing Cost		$ 1,818,595
Work in process , December 31, 2014		$ 12,500
Work in process , December 31, 2015		$ 14,100
Cost of Goods Manufactured		$ 1,816,995

Answer 9

Requirement-1:

Expert Solution

Answer 10

Requirement-1:

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 894,375
Raw Materials, December 31, 2014 (B)	$ 40,375
Raw Materials, December 31, 2015 (C)	$ 70,430
Raw Material Used (D) = A+B-C		$ 864,320
Direct Labor (E)		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs (F)		$ 391,775
Total Manufacturing Cost (G) =D+E+F		$ 1,818,595
Work in process , December 31, 2014 (H)		$ 12,500
Work in process , December 31, 2015 (I)		$ 14,100
Cost of Goods Manufactured (H) = G+H-I		$ 1,816,995

Answer 13

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3BPSB

Solution: The Income Statement for the year 2015 is as follows:

Best Bikes
Income Statement
For the year 2015

Sales		$ 4,942,625
Cost of Goods Sold		$ 1,852,445
Gross Profit		$ 3,090,180

Selling Expenses:
Advertising Expenses	$ 20,250
Depreciation Expense-Selling Equipment	$ 10,125
Rent Expense-Selling Space	$ 27,000
Sales Salaries Expense	$ 295,300
Total Selling Expenses		$ 352,675

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 8,440
Office Salaries Expense	$ 70,875
Rent Expense-Office Space	$ 23,625
Total General and Administrative Expenses		$ 102,940

Net Income before Taxes		$ 249,735
Taxes		$ 136,700
Net Income		$ 113,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Best Bikes
Income Statement
For the year 2015

Sales (A)		$ 4,942,625
Cost of Goods Sold (B)		$ 1,852,445
Gross Profit (C) = A-B =		$ 3,090,180

Selling Expenses:
Advertising Expenses	$ 20,250
Depreciation Expense-Selling Equipment	$ 10,125
Rent Expense-Selling Space	$ 27,000
Sales Salaries Expense	$ 295,300
Total Selling Expenses (D)		$ 352,675

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 8,440
Office Salaries Expense	$ 70,875
Rent Expense-Office Space	$ 23,625
Total General and Administrative Expenses (E)		$ 102,940

Net Income before Taxes (F) = C-D-E =		$ 249,735
Taxes (G)		$ 136,700
Net Income (F-G)		$ 113,035

Working note:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 894,375
Raw Materials, December 31, 2014 (B)	$ 40,375
Raw Materials, December 31, 2015 (C)	$ 70,430
Raw Material Used (D) = A+B-C		$ 864,320
Direct Labor (E)		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs (F)		$ 391,775
Total Manufacturing Cost (G) =D+E+F		$ 1,818,595
Work in process , December 31, 2014 (H)		$ 12,500
Work in process , December 31, 2015 (I)		$ 14,100
Cost of Goods Manufactured (H) = G+H-I		$ 1,816,995

Cost of Goods Manufactured (H)		$ 1,816,995
Finished Goods , December 31, 2014 (I)		$ 177,200
Finished Goods , December 31, 2015 (J)		$ 141,750
Cost of Goods Sold (K) =H+I-J		$ 1,852,445

Answer 14

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Answer 15

Requirement-2:

Expert Solution

Answer to Problem 3BPSB

Solution: The Income Statement for the year 2015 is as follows:

Best Bikes
Income Statement
For the year 2015

Sales		$ 4,942,625
Cost of Goods Sold		$ 1,852,445
Gross Profit		$ 3,090,180

Selling Expenses:
Advertising Expenses	$ 20,250
Depreciation Expense-Selling Equipment	$ 10,125
Rent Expense-Selling Space	$ 27,000
Sales Salaries Expense	$ 295,300
Total Selling Expenses		$ 352,675

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 8,440
Office Salaries Expense	$ 70,875
Rent Expense-Office Space	$ 23,625
Total General and Administrative Expenses		$ 102,940

Net Income before Taxes		$ 249,735
Taxes		$ 136,700
Net Income		$ 113,035

Answer 16

Requirement-2:

Expert Solution

Answer 17

Requirement-2:

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Best Bikes
Income Statement
For the year 2015

Sales (A)		$ 4,942,625
Cost of Goods Sold (B)		$ 1,852,445
Gross Profit (C) = A-B =		$ 3,090,180

Selling Expenses:
Advertising Expenses	$ 20,250
Depreciation Expense-Selling Equipment	$ 10,125
Rent Expense-Selling Space	$ 27,000
Sales Salaries Expense	$ 295,300
Total Selling Expenses (D)		$ 352,675

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 8,440
Office Salaries Expense	$ 70,875
Rent Expense-Office Space	$ 23,625
Total General and Administrative Expenses (E)		$ 102,940

Net Income before Taxes (F) = C-D-E =		$ 249,735
Taxes (G)		$ 136,700
Net Income (F-G)		$ 113,035

Working note:

Best Bikes
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 894,375
Raw Materials, December 31, 2014 (B)	$ 40,375
Raw Materials, December 31, 2015 (C)	$ 70,430
Raw Material Used (D) = A+B-C		$ 864,320
Direct Labor (E)		$ 562,500
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 35,400
Factory Supervision	$ 121,500
Factory Supplies used	$ 6,060
Factory Utilities	$ 37,500
Indirect Labor	$ 59,000
Misc. Production Costs	$ 8,440
Rent Expense-Factory Building	$ 93,500
Maintenance Expense- Factory Equipment	$ 30,375
Total Overhead Costs (F)		$ 391,775
Total Manufacturing Cost (G) =D+E+F		$ 1,818,595
Work in process , December 31, 2014 (H)		$ 12,500
Work in process , December 31, 2015 (I)		$ 14,100
Cost of Goods Manufactured (H) = G+H-I		$ 1,816,995

Cost of Goods Manufactured (H)		$ 1,816,995
Finished Goods , December 31, 2014 (I)		$ 177,200
Finished Goods , December 31, 2015 (J)		$ 141,750
Cost of Goods Sold (K) =H+I-J		$ 1,852,445