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5.

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.

	On Company		Off Company
Materials inventory, December 1	$73,370		$97,580
Materials inventory, December 31	(a)		110,270
Materials purchased	186,360		(a)
Cost of direct materials used in production	196,630		(b)
Direct labor	276,600		219,560
Factory overhead	85,840		109,290
Total manufacturing costs incurred in December	(b)		631,340
Total manufacturing costs	699,940		866,510
Work in process inventory, December 1	140,870		235,170
Work in process inventory, December 31	118,860		(c)
Cost of goods manufactured	(c)		625,490
Finished goods inventory, December 1	124,000		109,290
Finished goods inventory, December 31	129,860		(d)
Sales	1,081,470		975,800
Cost of goods sold	(d)		631,340
Gross profit	(e)		(e)
Operating expenses	140,870		(f)
Net income	(f)		216,630

Required:

1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

Letter	On Company	Off Company
a.	$	$
b.	$	$
c.	$	$
d.	$	$
e.	$	$
f.	$	$

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

On Company
Statement of Cost of Goods Manufactured
For the Month Ended December 31
			$
Direct materials:
	$
	$
		$
Total manufacturing costs incurred during December
Total manufacturing costs			$
			$

3. Prepare On Company's income statement for December.

On Company
Income Statement
For the Month Ended December 31
		$
Cost of goods sold:
	$
	$
		$
		$

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