Chapter 19, Problem P19.38BPGB

To determine

Cost of goods manufactured:

It is the cost incurred on manufacturing the products of a company during a particular period. It does not include the opening inventory of products which already made.

Operating income:

An operating income is the income generated from the usual operation of the company.

To determine:

1. Prepare the journal entries for the transactions.

2. Open T-accounts for the general ledger, the raw materials inventory subsidiary ledger, the work-in-progress inventory subsidiary ledger, and the finished goods inventory subsidiary ledger.

3. The preparation of trial balance at June 30, 2016.

4. The preparation of schedule of cost of goods manufactured for the month of June.

5. The preparation of income statement for the month of June.