Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December On Company $75,400 Off Company $101,040 114,180 (a) 191,520 202,070 284,260 88,220 (b) (b) 227,340 113,160 Materials inventory, December 1 Materials inventory, December 31 Materials purchased Cost of direct materials used in production Direct labor Factory overhead Total manufacturing costs incurred in December Total manufacturing costs Work in process inventory, December 1 Work in process inventory, December 31 Cost of goods manufactured Finished goods inventory, December 1 Finished goods inventory, December 31 Sales 653,730 897,240 719,320 144,770 243,510 122,150 (c) (c) 647,670 127.430 113,160 133,460 1,111,400 (d) 1,010,400 Cost of goods sold Gross profit Operating expenses 653,730 (e) (e) 144,770 (f) Net income 224,310 Required: 1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers. Letter On Company off Company b c. S d $ f. Feedback Check My Won 1. a. The cost of direct materials used in production includes the beginning materials inventory plus purchases, less the ending materials inventory. b. Total manufacturing costs incurred during December include direct materials, direct labor, and factory overhead. C. The cost of goods manufactured is beginning work in process plus total manufacturing costs less the ending work in process. d. The cost of goods sold is the beginning finished goods plus the cost of goods manufactured, less the ending finished goods. e. Sales minus cost of goods sold equals gross profit. f. Gross profit minus operating expenses equals net income. Use similar relationships from On to find the missing amounts for the Off items (a) through (1). 2. Prepare on Company's statement of cost of goods manufactured for December. On Company Statement of Cost of Goods Manufactured For the Month Ended December 31 Work in process inventory, December 1 Direct materials: Materials inventory, December 1 Purchases Cost of materials available for use Less materials inventory, December 31 Cost of direct materials used Direct labor Factory overhead Total manufacturing costs incurred Total manufacturing costs Less work in process inventory, December 31 Cost of goods manufactured 3. Prepare On Company's income statement for December On Company Income Statement For the Month Ended December 31 Sales Cost of goods sold: Finished goods inventory, December 1 Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, December 31 Cost of goods sold Gross profit Operating expenses Net Income
