1.

Rainier Company

Yakima Company

Materials inventory, May 1

$100,000

$48,200

Materials inventory, May 31

(A)

50,000

Materials purchased

950,000

710,000

Cost of direct materials used in production

938,500

(A)

Direct labor

2,860,000

(B)

Factory overhead

1,800,000

446,000

Total manufacturing costs incurred during May

(B)

2,484,200

Total manufacturing costs

5,998,500

2,660,600

Work in process inventory, May 1

400,000

176,400

Work in process inventory, May 31

382,000

(C)

Cost of goods manufactured

(C)

2,491,500

Finished goods inventory, May 1

615,000

190,000

Finished goods inventory, May 31

596,500

(D)

Sales

9,220,000

4,550,000

Cost of goods sold

(D)

2,470,000

Gross profit

(E)

(E)

Operating expenses

1,000,000

(F)

Net income

(F)

1,500,000

2.

Yakima Company

Statement of Cost of Goods Manufactured

For the Month Ended May 31

Work in process inventory, May 1

$176,400

Direct materials:

Materials inventory, May 1

$48,200

Purchases

Cost of materials available for use

Materials inventory, May 31

Cost of direct materials used in production

Direct labor

Factory overhead

Total manufacturing costs incurred during May

Total manufacturing costs

$2,660,600

Work in process inventory, May 31

Cost of goods manufactured

$2,491,500

3.

Yakima Company

Income Statement

For the Month Ended May 31

Sales

$4,550,000

Cost of goods sold:

Finished goods inventory, May 1

$190,000

Cost of goods manufactured

2,491,500

Cost of finished goods available for sale

Finished goods inventory, May 31

Cost of goods sold

Gross profit

Operating expenses

Net income

$1,500,000

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

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

Instructions

For both companies, determine the amounts of the missing items (A) through (F), identifying them by letter.

Check Figure: B. Yakima Company, $1,330,000

Prepare Yakima Company's statement of cost of goods manufactured for May.

Prepare Yakima Company's income statement for May.