D 1 An Introduction to Cost Terms and purposes 2 Cost of goods manufactured Income statement, manufacturing company G H Free work cells Answers 4 5 Consider the following account balances (in thousands) for the Carolina Corporation Beginning of 2017 124,000 173,000 240,000 6 Carolina Corporation 7 Direct materials Inventory 8 Work in process inventory 9 Finished-goods inventory 10 Purchases of direct materials 11 Direct manufacturing labor 12 Indirect manufacturing labor 13 Plant Insurance 14 Depreciation plant, building, and equipment 15 Piant utilities 16 Repairs and maintenance plant 17 Production equipment leasing costs 18 Marketing, distribution, and customer service costs 19. General and administrative costs 20 Revenues End of 2017 73.000 145,000 206,000 262,000 217.000 97000 9,000 45,000 25,000 12,000 65,000 125,000 71,000 1,300,000 22 Answer cells must remain in the same location so do not insert/delete columns er rows in the file Numeric anwers must include a formula or reference to do net hard enter the answer. 24 1. Prepare a schedule for the cost of goods manutactured in 2017. 25 26 Carolina Corporation 27 Schedule of Cost of Goods Manufactured Year Ended December 31, 2017 (in thousands) 10 Direct materials costs 34 35 Direct materials used 36 Direct manufacturing labor costs B 35 Direct materials used 36 Direct manufacturing labor costs 37 Manufacturing overhead costs: 38 39 40 41 42 43 44 Total manufacturing overhead costs 45 Manufacturing costs incurred during 2017 46 Beginning Work-in-process inventory 47 Total manufacturing costs to account for 48 Ending Work-in-process inventory 49 Cost of goods manufactured 50 51 2. Prepare the income statement for 2017. 52 53 Carolina Corporation 54 Income Statement 55 Year Ended December 31, 2017 (in thousands) 57 58 Cost of goods sold: 59 60 61 62 63 Cost of goods sold 64 Gross margin 65 Operating costs: 66 67 68 Total operating costs 69 Operating income (loss) 70 CH2B 56