16

Manufacturing Income Statement, Statement of Cost of Goods Manufactured

Several items are omitted from the income statement and cost of goofs manufactured statement data for two different companies for the month of December 2014:

Grant Company		McClellan Company
Materials inventory, December 1	$84,500		$116,610
Materials inventory, December 31	(a)		131,770
Materials purchased	214,630		262,370
Cost of direct materials used in production	226,460		(a)
Direct labor	318,570		(b)
Factory overhead	98,870		130,600
Total manufacturing costs incurred during December	(b)		754,470
Total manufacturing costs	806,140		1,035,500
Work in process inventory, December 1	162,240		281,030
Work in process inventory, December 31	136,890		(c)
Cost of goods manufactured	(c)		747,470
Finished goods inventory, December 1	142,810		130,600
Finished goods inventory, December 31	149,570		(d)
Sales	1,245,530		1,166,100
Cost of goods sold	(d)		754,470
Gross profit	(e)		(e)
Operating expenses	162,240		(f)
Net income	(f)		258,870

Required:

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

Letter	Grant Company	McClellan Company
a.	$ 72, 670 (Answer Correct)	$ ?
b.	$ ?	$ ?
c.	$ ?	$ ?
d.	$ ?	$ ?
e.	$ ?	$ ?
f.	$ ?	$ ?

2. Prepare McClellan Company's statement of cost of goods manufactured for December. Enter all amounts as positive numbers.

McClellan Company

Statement of Cost of Goods Manufactured

For the Month Ended December 31, 2014

Work in process inventory, December 1, 2014			$__?__
Direct materials:
Materials inventory, December 1, 2014	$__?__
Purchases	$__?__
Cost of materials available for use	$__?__
Less materials inventory, December 31, 2014	$__?__
Cost of direct materials used in production		$__?__
Direct Labor		$__?__
Factory overhead		$__?__
Total manufacturing costs incurred during December			$__?__
Total manufacturing costs			$__?__
Less work in process inventory, December 31, 2014			$__?__
Cost of goods manufactured			$__?__

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

McCellan Company

Income Statement

For the Month Ended December 31, 2014

Sales		$__?__
Cost of goods sold
Finished goods inventory, December1, 2014	$__?__
Cost of goods manufactured	$__?__
Cost of finished goods available for sale	$__?__
Less finished goods inventory, December 31, 2014	$__?__
Cost of goods sold		$__?__
Gross Profit		$__?__
Operating Expenses		$__?__
Net Income		$ __?__