1.

Manufacturing Income Statement, Statement of Cost of Goods 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.

	On Company		Off Company
Materials inventory, December 1	$61,580		$80,670
Materials inventory, December 31	(a)		91,160
Materials purchased	156,410		(a)
Cost of direct materials used in production	165,030		(b)
Direct labor	232,160		181,510
Factory overhead	72,050		90,350
Total manufacturing costs incurred in December	(b)		521,930
Total manufacturing costs	587,470		716,340
Work in process inventory, December 1	118,230		194,410
Work in process inventory, December 31	99,760		(c)
Cost of goods manufactured	(c)		517,090
Finished goods inventory, December 1	104,070		90,350
Finished goods inventory, December 31	109,000		(d)
Sales	907,690		806,700
Cost of goods sold	(d)		521,930
Gross profit	(e)		(e)
Operating expenses	118,230		(f)
Net income	(f)		179,090

Required:

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

Letter	On Company	Off Company
a.	$	$
b.	$	$
c.	$	$
d.	$	$
e.	$	$
f.	$	$

2. Prepare On Company's statement of cost of goods manufactured for December.

On Company
Statement of Cost of Goods Manufactured
For the Month Ended December 31
			$
Direct materials:
	$
	$
		$
Total manufacturing costs incurred during December
Total manufacturing costs			$
			$

3. Prepare On Company's income statement for December.

On Company
Income Statement
For the Month Ended December 31
		$
Cost of goods sold:
	$
	$
		$
		$