Cost of Goods Manufactured, Income Statement

Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported the following:

Work-in-process inventory, January 1		$ 13,370
Work-in-process inventory, December 31		28,280
Finished goods inventory, January 1		112,910
Finished goods inventory, December 31		85,430
Direct materials inventory, January 1		3,490
Direct materials inventory, December 31		2,690
Direct materials purchased		184,280
Direct labor		139,210
Plant depreciation		19,670
Salary, production supervisor		46,610
Indirect labor		68,450
Utilities, factory		15,780
Sales commissions		42,150
Salary, sales supervisor		75,390
Depreciation, factory equipment		31,910
Administrative expenses		167,820
Supplies (40% used in the factory, 60% used in the sales office)		17,640
Advertising expense		43,430

Last year, Orman produced 88,580 units and sold 90,690 units at $10.90 per unit

1. Prepare a statement of cost of goods manufactured.

Orman Company
Statement of Cost of Goods Manufactured
For Last Year
Direct materials:
Beginning inventory	$fill in the blank da43950d2ff5fbb_2
Add: Cost of goods manufactured	fill in the blank da43950d2ff5fbb_4
Less: Cost of goods manufactured	fill in the blank da43950d2ff5fbb_6
Direct materials used in production		$fill in the blank da43950d2ff5fbb_7
Direct labor		fill in the blank da43950d2ff5fbb_9
Manufacturing overhead:
Plant depreciation	$fill in the blank da43950d2ff5fbb_11
Salary, production supervisor	fill in the blank da43950d2ff5fbb_13
Indirect labor	fill in the blank da43950d2ff5fbb_15
Utilities, factory	fill in the blank da43950d2ff5fbb_17
Depreciation, factory equipment	fill in the blank da43950d2ff5fbb_19
Supplies	fill in the blank da43950d2ff5fbb_21	fill in the blank da43950d2ff5fbb_22
Total manufacturing costs added		$fill in the blank da43950d2ff5fbb_23
Add: Beginning work in process		fill in the blank da43950d2ff5fbb_25
Less: Ending work in process		fill in the blank da43950d2ff5fbb_27
Cost of goods manufactured		$fill in the blank da43950d2ff5fbb_28

2. Prepare an absorption-costing income statement.

Orman Company
Income Statement: Absorption Costing
For Last Year
Sales		$fill in the blank 18c3f700bfdafe1_2
Cost of goods sold:
Beginning finished goods inventory	$fill in the blank 18c3f700bfdafe1_4
Add: Cost of goods manufactured	fill in the blank 18c3f700bfdafe1_6
	$fill in the blank 18c3f700bfdafe1_8
	fill in the blank 18c3f700bfdafe1_10	fill in the blank 18c3f700bfdafe1_11
		$fill in the blank 18c3f700bfdafe1_13
Less operating expenses:
	$fill in the blank 18c3f700bfdafe1_15
	fill in the blank 18c3f700bfdafe1_17	fill in the blank 18c3f700bfdafe1_18
		$fill in the blank 18c3f700bfdafe1_20