Good Vibrations, Inc., produces videotapes of musical performances. A newly hired executive of the company has asked you to sort through the records and prepare a statement of the company's cost of goods manufactured. You find the following data from records prepared by Good Vibrations, Inc., for the year ended December 31: Raw Materials purchases Direct labor Indirect labor Indirect materials used Factory utilities used Factory supplies used Depreciation expense - factory building Depreciation expense - Factory Equipment Other manufacturing overhead $ 50,000 40,000 15,000 1,500 7,000 5,000 14,000 10,500 25,000 Inventories: Beginning raw materials inventory, January 1 Ending raw materials inventory, December 31 $ 6,000 10,500 10,000 9,500 Beginning work in process inventory, January 1 Ending work in process inventory, December 31 Beginning finished goods invenory, January 1 Ending finished goods inventory, December 31 $20,000 5,000 You also learn that Sales for the year was $400,000. Selling expenses were $50,000 and administrative expenses were $75,000. Requirements: a. Prepare a statement of cost of goods manufactured for Good Vibrations, Inc., for the year ended December 31. (Items that are subtracted should be entered as a negative number.) b. Prepare an income statement for Good Vibrations, Inc., for the year ended December 31. (Items that are subtracted should be entered as a negative number.) Vibrations, Inc. Manufacturing Statement For Year Ended December 31 50,000 Beginning Raw Materials Inventory Plus: Raw Materials Purchases Less: Ending Raw Materials Inventory Raw Materials Used Less: Indirect Materials Used Direct Materials Used (DM) Direct Labor (DL) Manufacturing Overhead: Indirect Materials Factory Supplies expense Factory utilities expenses Depreciation expesne-factory equipment Depreciation expesne-factory building Indirect Labor Other Manufacturing Overhead Total Overhead (OHD) 1,500 5,000 7,000 10,500 14,000 15,000 25,000 10,000 Total Manufacturing Cost (DM+DL + OHD) Plus: Beginning Work in Process Inventory Less: Ending Work in Process Inventory Cost of Goods Manufactured Good Vibrations, Inc. Income Statement For Year Ended December 31 $ 20,000 Sales Less: Cost of Goods Sold Plus: Beginning Finished Goods Inventory Cost of Goods Manufactured Less: Ending Finished Goods Inventory Cost of Goods Sold Gross Profit Selling expenses Administrative expenses Total Selling and Admin Expenses Net Income
