Manufacturing Income Statement, Statement of Cost of GoodsManufactured
Several items are omitted from the income statement and cost ofgoods manufactured statement data for two different companies forthe month of December.
| On
Company | Off
Company |
| Materials inventory, December 1 | $66,090 | | $83,930 | |
| Materials inventory, December 31 | (a) | | 94,840 | |
| Materials purchased | 167,870 | | (a) | |
| Cost of direct materials used in production | 177,120 | | (b) | |
| Direct labor | 249,160 | | 188,840 | |
| Factory overhead | 77,330 | | 94,000 | |
| Total manufacturing costs incurred in December | (b) | | 543,030 | |
| Total manufacturing costs | 630,500 | | 745,300 | |
| Work in process inventory, December 1 | 126,890 | | 202,270 | |
| Work in process inventory, December 31 | 107,070 | | (c) | |
| Cost of goods manufactured | (c) | | 537,990 | |
| Finished goods inventory, December 1 | 111,690 | | 94,000 | |
| Finished goods inventory, December 31 | 116,980 | | (d) | |
| Sales | 974,170 | | 839,300 | |
| Cost of goods sold | (d) | | 543,030 | |
| Gross profit | (e) | | (e) | |
| Operating expenses | 126,890 | | (f) | |
| Net income | (f) | | 186,320 | |
Required:
1. Determine the amounts of the missing items,identifying them by letter. Enter all amounts as positivenumbers.
| Letter | On Company | Off Company |
| a. | $ | $ |
| b. | $ | $ |
| c. | $ | $ |
| d. | $ | $ |
| e. | $ | $ |
| f. | $ | $ |
2. Prepare On Company's statement of cost ofgoods manufactured for December.
| On Company |
| Statement of Cost of Goods Manufactured |
| For the Month Ended December 31 |
| Work in process inventory, December 1 | | | $ |
| Direct materials: | | | |
| Materials inventory, December 1 | $ | | |
| Purchases | | | |
| Cost of materials available for use | $ | | |
| Less materials inventory, December 31 | | | |
| Cost of direct materials used in production | | $ | |
| Direct labor | | | |
| Factory overhead | | | |
| Total manufacturing costs incurred during December | | | |
| Total manufacturing costs | | | $ |
| Less materials inventory, December 31 | | | |
| Cost of goods manufactured | | | $ |
3. Prepare On Company's income statement forDecember.
| On Company |
| Income Statement |
| For the Month Ended December 31 |
| Sales | | $ |
| Cost of goods sold: | | |
| Finished goods inventory, December 1 | $ | |
| Cost of goods manufactured | | |
| Cost of finished goods available for sale | $ | |
| Less finished goods inventory, December 31 | | |
| Cost of goods sold | | |
| Gross profit | | $ |
| Operating expenses | | |
| Net income | | $ |
