Manufacturing income statement, statement of cost of goods OBJ. 2, 3 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 2016:

Prius Company Volt Company Materials inventory, December 1 $ 280,280 $ 177,000 Materials inventory, December 31

(a) 180,000 Materials purchased 712,800 342,000 Cost of direct materials used in production 752,400 (a)

Direct labor 1,058,400 (b)

Factory overhead 327,600 180,000 Total manufacturing costs incurred during December

(b) 1,035,000 Total manufacturing costs 2,678,400 1,477,500 Work in process inventory, December 1 540,000 442,500 Work in process inventory, December 31 453,600 (c)

Cost of goods manufactured

(c) 1,024,500 Finished goods inventory, December 1 475,200 204,000 Finished goods inventory, December 31 496,800 (d)

Sales 4,140,000 1,675,500 Cost of goods sold

(d) 1,051,500 Gross profit

(e) (e)

Operating expenses 540,000 (f)

Net income

(f) 384,000 Instructions 1. Determine the amounts of the missing items, identifying them by letter.

2. Prepare Volt Company’s statement of cost of goods manufactured for December.

3. Prepare Volt Company’s income statement for December.