Several items are omitted from the income statement and cost ofgoods manufactured statement data for two different companies forthe month of December 2016: 1 Prius Company Volt Company 2Materials inventory, December 1 $281,680.00 $179,000.00 3 Materialsinventory, December 31 (a) 175,500.00 4 Materials purchased714,000.00 341,500.00 5 Cost of direct materials used in production752,400.00 (a) 6 Direct labor 1,058,800.00 (b) 7 Factory overhead325,400.00 178,600.00 8 Total manufacturing costs incurred duringDecember (b) 1,038,000.00 9 Total manufacturing costs 2,677,200.001,481,500.00 10 Work in process inventory, December 1 540,600.00443,500.00 11 Work in process inventory, December 31 453,200.00 (c)12 Cost of goods manufactured (c) 1,025,500.00 13 Finished goodsinventory, December 1 477,800.00 201,500.00 14 Finished goodsinventory, December 31 496,400.00 (d) 15 Sales 4,140,000.001,678,000.00 16 Cost of goods sold (d) 1,042,000.00 17 Gross profit(e) (e) 18 Operating expenses 543,000.00 (f) 19 Net income (f)380,500.00 Required: A. Determine the amounts of the missing items,identifying them by letter. Enter all amounts as positive numbers.B. Prepare Volt Company’s statement of cost of goods manufacturedfor December.* C. Prepare Volt Company’s income statement forDecember.* * Refer to the Amount Descriptions list provided for theexact wording of the answer choices for text entries. “Less” or“Plus” will automatically appear if it is required. Enter allamounts as positive numbers. Amount Descriptions Cost of directmaterials used in production Cost of finished goods available forsale Cost of goods manufactured Cost of goods sold Cost ofmaterials available for use Direct Labor Factory overhead Finishedgoods inventory, December 1, 2016 Finished goods inventory,December 31, 2016 Gross profit Materials inventory, December 1,2016 Materials inventory, December 31, 2016 Net income Operatingexpenses Purchases Sales Total manufacturing costs incurred duringDecember Work in process inventory, December 1, 2016 Work inprocess inventory, December 31, 2016 A. Determine the amounts ofthe missing items, identifying them by letter. Enter all amounts aspositive numbers. Letter Prius Company Volt Company a. $243,280$345,000 b. $2,136,600 $514,400 c. $2,224,000 $456,000 d.$2,205,400 $185,000 e. $1,391,600 $636,000 f. $1,391,600 $255,500Points: 11 / 12 Check My Work A. For Prius Company: (Note: Usesimilar relationships to find the missing amounts for the VoltCompany items a through f.) a. The beginning and ending materialsinventory amounts and the amount of materials purchased are used inthe calculation of the cost of direct materials used in production.b. The three costs of a manufactured product are added to determinetotal manufacturing costs incurred during December. c. Thebeginning and ending work in process amounts and the manufacturingcosts incurred during December are used in the calculation of thecost of goods manufactured. d. The beginning and ending finishedgoods amounts and the cost of goods manufactured are used in thecalculation of the cost of goods sold. e. Sales and one expenseamount are used to determine gross profit. f. Sales and expenseamounts are used to determine net income.
