90.2K

Verified Solution

Link Copied!

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

1		Rainier Company	Yakima Company
2	Materials inventory, May 1	$100,000.00	$48,200.00
3	Materials inventory, May 31	(a)	50,000.00
4	Materials purchased	950,000.00	710,000.00
5	Cost of direct materials used in production	938,500.00	(a)
6	Direct labor	2,860,000.00	(b)
7	Factory overhead	1,800,000.00	446,000.00
8	Total manufacturing costs incurred May	(b)	2,484,200.00
9	Total manufacturing costs	5,998,500.00	2,660,600.00
10	Work in process inventory, May 1	400,000.00	176,400.00
11	Work in process inventory, May 31	382,000.00	(c)
12	Cost of goods manufactured	(c)	2,491,500.00
13	Finished goods inventory, May 1	615,000.00	190,000.00
14	Finished goods inventory, May 31	596,500.00	(d)
15	Sales	9,220,000.00	4,550,000.00
16	Cost of goods sold	(d)	2,470,000.00
17	Gross profit	(e)	(e)
18	Operating expenses	1,000,000.00	(f)
19	Net income	(f)	1,500,000.00

	Required:
	a. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
	b. Prepare Yakima Companys statement of cost of goods manufactured for May. For those boxes in which you must enter subtracted or negative numbers use a minus sign.*
	c. Prepare Yakima Companys income statement for May. Enter all amounts as positive numbers.* * Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Starting Question

Shaded cells have feedback.

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

Letter	Rainier Company	Yakima Company
a.
b.
c.
d.
e.
f.

Points:

0 / 12

Feedback

Check My Work

a. For Rainier Company: (Note: Use similar relationships to find the missing amounts for the Yakima Company items a through f.)

a. The beginning and ending materials inventory amounts and the amount of materials purchased are used in the calculation of the cost of direct materials used in production.

b. The three costs of a manufactured product are added to determine total manufacturing costs incurred during May.

c. The beginning and ending work in process amounts and the manufacturing costs incurred during May are used in the calculation of the cost of goods manufactured.

d. The beginning and ending finished goods amounts and the cost of goods manufactured are used in the calculation of the cost of goods sold.

e. Sales and one expense amount are used to determine gross profit.

f. Sales and expense amounts are used to determine net income.

Statement of Cost of Goods Manufactured

Shaded cells have feedback.

b. Prepare Yakima Companys statement of cost of goods manufactured for May. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Question not attempted.

Score: 0/100

Yakima Company

Statement of Cost of Goods Manufactured

For the Month Ended May 31

1
2	Direct materials:
3
4
5
6
7
8
9
10
11	Total manufacturing costs
12
13

Points:

0 / 23

Feedback

Check My Work

b. The beginning and ending work in process amounts and the manufacturing costs incurred during May are used in the calculation of the cost of goods manufactured.

Income Statement

Shaded cells have feedback.

c. Prepare Yakima Companys income statement for May. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers.

Question not attempted.

Score: 0/76

Yakima Company

Income Statement

For the Month Ended May 31

1
2	Cost of goods sold:
3
4
5
6
7
8
9
10

Points:

0 / 18

Feedback

Check My Work

c. The beginning and ending finished goods amounts and the cost of goods manufactured are used in the calculation of the cost of goods sold. Sales and one expense amount are used to determine gross profit.

Sales and expense amounts are used to determine net income.

Answer & Explanation Solved by verified expert

See Answer