Question 2: Manufacturing Statement and Income Statement(20 marks in total)Lake Ltd.’s accounting department provided...Question...

Free

90.2K

Verified Solution

Question

Accounting

Question 2: Manufacturing Statement and Income Statement(20 marks in total)
Lake Ltd.’s accounting department provided following financialinformation:
Depreciation Expense - Factory Equipment
$ 90,000
Direct Labour
$  1,284,000
Raw Material Inventory (1st July, 2016)
$ 183,000
Raw Material Inventory (30th June, 2017)
$ 186,000
Factory Rent
$ 152,820
Finished Goods (1st July, 2016)
$ 264,000
Finished Goods (30th June, 2017)
$ 345,000
Indirect Labour
$ 75,000
Indirect Materials
$ 52,500
Sales Revenue
$  6,751,500
Administration Expenses
$ 600,000
Selling & Distribution Expenses
$  1,200,000
Purchase of Raw Material
$  1,200,360
Freight In
$ 90,000
Work in Process (1st July, 2016)
$ 60,600
Work in Process (30th June, 2017)
$ 57,330
Required: prepare a statement of Cost of GoodsManufactured and an Income Statement for Lake Ltd. for the yearended 30^th June 2017. You can prepare the statements inan Excel spreadsheet then paste into Word.

Answer & Explanation Solved by verified expert

3.8 Ratings (685 Votes)

Cost of Goods Manufactured Schedule

Work in Process (1st July, 2016)		$60,600
Direct materials:
Raw Material Inventory (1st July, 2016)	$183,000
Add: Raw material purchased	1200360
Freight In	90000
Raw material available	$1,473,360
Less: Raw Material Inventory (30th June, 2017)	$186,000
Raw material used	$1,287,360
Less:Indirect material	52500
Direct material used		$1,234,860
Direct Labour		1284000
Overhead:
Indirect material used	52500
Indirect labor	75000
Factory Rent	$152,820
Depreciation Expense - Factory Equipment	$90,000

Total overhead cost		$370,320
Total costs		$2,949,780
Work in Process (30th June, 2017)		$57,330
Cost of goods manufactured		$2,892,450



Cost of Goods Sold Schedule
Beginning finished goods		$264,000
Cost of goods manufactured		$2,892,450
Goods available for sale		$3,156,450
Ending finished goods inventory		$345,000
Cost of goods sold		$2,811,450

Income statement
Sales		6751500
Less: Cost of good sold		$2,811,450
grosss margin		$3,940,050
Less: selling & administrative expenses
Selling & Distribution Expenses	1200000
Administration Expenses	$600,000	$1,800,000
Net Income		$2,140,050

If any doubt please comment

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingQuestion 2: Manufacturing Statement and Income Statement(20 marks in total)Lake Ltd.’s accounting department provided...Question 2: Manufacturing Statement and Income Statement(20 marks in total)Lake Ltd.’s accounting department provided following financialinformation:Depreciation Expense - Factory Equipment$ 90,000Direct Labour$ 1,284,000Raw Material Inventory (1st July, 2016)$ 183,000Raw Material Inventory (30th June, 2017)$ 186,000Factory Rent$ 152,820Finished Goods (1st July, 2016)$ 264,000Finished Goods (30th June, 2017)$ 345,000Indirect Labour$ 75,000Indirect Materials$ 52,500Sales Revenue$ 6,751,500Administration Expenses$ 600,000Selling & Distribution Expenses$ 1,200,000Purchase of Raw Material$ 1,200,360Freight In$ 90,000Work in Process (1st July, 2016)$ 60,600Work in Process (30th June, 2017)$ 57,330Required: prepare a statement of Cost of GoodsManufactured and an Income Statement for Lake Ltd. for the yearended 30th June 2017. You can prepare the statements inan Excel spreadsheet then paste into Word.

Depreciation Expense - Factory Equipment	$ 90,000
Direct Labour	$ 1,284,000
Raw Material Inventory (1st July, 2016)	$ 183,000
Raw Material Inventory (30th June, 2017)	$ 186,000
Factory Rent	$ 152,820
Finished Goods (1st July, 2016)	$ 264,000
Finished Goods (30th June, 2017)	$ 345,000
Indirect Labour	$ 75,000
Indirect Materials	$ 52,500
Sales Revenue	$ 6,751,500
Administration Expenses	$ 600,000
Selling & Distribution Expenses	$ 1,200,000
Purchase of Raw Material	$ 1,200,360
Freight In	$ 90,000
Work in Process (1st July, 2016)	$ 60,600
Work in Process (30th June, 2017)	$ 57,330