Income Statement For the month ended March 31, 2021 $ 107,800 1,250 7,000 21,100 200 1,800 1,700 30,000 Sales revenue ($220 per units sold) Less Operating expenses Entertainment and travel........... Selling and administrative salaries...... Factory salaries and wages expenses....... Office supplies expense.......... Shipping cost on finished goods sold.. Indirect materials used.......... Raw materials purchases... Purchases returns and allowance - raw materials purchases.......... Depreciation - Factory machinery... Depreciation - Office equipment... Utilities.......... Advertising... Other manufacturing overheads..... Other selling and administrative expenses... Net operating income...... 300 1,200 700 12,500 3,500 4,000 1.000 (86,250) $ 21,550 The above income statement is an incorrect statement for a manufacturing firm. You are given the following supporting information. a. Utilities is apportioned 80% to manufacturing, and the remainder is for selling and administrative expenses. b. Factory salaries and wages expenses $21.100 are distributed as follows: Direct laborers' wages expense: Normal hour... 120 hours @ $60 Idle hour... 10 hours @ $60 Overtime hour 30 hours a $90 $16,100 Fringe benefit. 160 hours @ $35 Supervisory salaries 5,000 $21.100 The company treats part of fringe benefit relating to direct labor as added direct labor cost, and the remaining balance as part of manufacturing overhead. The company treats part of fringe benefit relating to direct labor as added direct labor cost, and the remaining balance as part of manufacturing overhead. c. Inventory account balances of the month. Raw materials Work in process Finished goods March 1 $6,000 $ 6,850 145 units @ $ 155 March 31 $4,500 $ 4,350 55 units d. First-in, First-out (FIFO) inventory method is used. Required: Fill in the following balances for March, 2021. This is computer check, please follow strictly the following: DO NOT put a "$" dollar sign" and "" comma sign" on your answers. Example, $6,000 this is NOT acceptable, 6,000 NOT acceptable. This should be how your answer should look like 6000. 6000 Example of an answer 1. Total direct materials used 31700 2. Total direct labor cost incurred 22350 3. The amount of fringe benefit considered as part of manufacturing overhead Total manufacturing overhead of the month 4. 5. Units produced of finished goods in March Required: Fill in the following balances for March, 2021. This is computer check, please follow strictly the following: DO NOT put a "$" dollar sign" and "," comma sign" on your answers. Example, $6,000 this is NOT acceptable, 6,000 NOT acceptable. This should be how your answer should look like 6000. 6000 Example of an answer 1. Total direct materials used 31700 2. Total direct labor cost incurred 22350 3. The amount of fringe benefit considered as part of manufacturing overhead Total manufacturing overhead of the month 4. 5. Units produced of finished goods in March 6. Total cost of goods manufactured in March 7. The average manufacturing cost of finished goods produced during the month Total cost of finished goods on March 31, 2021 8. 9. Total period cost of the month 10. The net operating income of March
