Chapter 15

Prepare an Income Statement (including cost of goods sold calculation) and a Statement of Cost of Goods Manufactured for the month ended January 31 in proper form using the following information (note that some balances are missing and must be computed):

(in $000's)

Sales revenue $1,127.0

Cost of goods sold ?

Gross profit ? / Net income ?

Operating expenses (selling and administrative) 117.6

Direct materials inventory January 1 65.8

Direct materials inventory January 31 ?

Direct materials purchased 282.8

Cost of Direct materials used 317.8

Direct labor costs 387.8

FOH costs 148.4

Total manufacturing costs in January ?

Total manufacturing costs 973.0

WIP inventory Janaury 1 119.0

WIP inventory January 31 172.2

Cost of goods manufactured ?

FG inventory January 1 224.0

FG inventory Janaury 31 197.4