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Part A: Schedules of Cost of Goods Manufactured and Cost of Goods Sold Income Statement

The document contains schedules for cost of goods manufactured and cost of goods sold, as well as an income statement, for a manufacturing company. It shows the company incurred $123,000 in total manufacturing costs including $41,000 in raw materials, $23,000 in direct labor, and $59,000 in manufacturing overhead. The cost of goods manufactured was $119,000. The income statement indicates the company had sales of $220,000 and cost of goods sold of $132,000, resulting in gross margin of $88,000 and net operating income of $27,000 after selling and administrative expenses.

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26 views

Part A: Schedules of Cost of Goods Manufactured and Cost of Goods Sold Income Statement

The document contains schedules for cost of goods manufactured and cost of goods sold, as well as an income statement, for a manufacturing company. It shows the company incurred $123,000 in total manufacturing costs including $41,000 in raw materials, $23,000 in direct labor, and $59,000 in manufacturing overhead. The cost of goods manufactured was $119,000. The income statement indicates the company had sales of $220,000 and cost of goods sold of $132,000, resulting in gross margin of $88,000 and net operating income of $27,000 after selling and administrative expenses.

Uploaded by

aks
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Part A: Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income

Statement

a. Schedule of Cost of Goods Manufactured

Direct materials:

Beginning materials inventory $26,000


Add:
Purchases of raw materials 50,000
Raw materials available for use 76,000
Deduct:
Ending raw materials inventory 35,000

Raw materials used in production $ 41,000


Direct labor 23,000
Manufacturing overhead 59,000
Total manufacturing costs 123,000
Add:
Beginning work in process inventory 18,000
141,000
Deduct:
Ending work in process inventory 22,000
Cost of goods manufactured $119,000

b.
Income Statement

Sales $220,000
Cost of goods sold:
Beginning finished goods inventory $ 42,000
Add:
Cost of goods manufactured 119,000
Goods available for sale 161,000
Deduct:
Ending finished goods inventory 29,000 132,000
Gross margin 88,000
Selling and administrative expenses:
Selling expenses 18,000
Administrative expenses 43,000 61,000
Net operating income $27,000

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