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 Off Company Company Materials inventory, December 1 $59,650 $75,760 Materials inventory, December 31 (a) 85,610 Materials purchased 151,510 (a) Cost of direct materials used in production 159,860 (b) Direct labor 224,880 170,460 Factory overhead 69,790 84,850 Total manufacturing costs incurred in December (b) 490,170 Total manufacturing costs 569,060 569,060 Work in process inventory, December 1 114,530 182,580 Work in process inventory, December 31 96,630 (c) Cost of goods manufactured (c) 485,620 Finished goods inventory, December 1 100,810 84,850 Finished goods inventory, December 31 105,580 (d) Sales 879,240 757,600 Cost of goods sold (d) 490,170 Cost of goods sold Gross profit Operating expenses Net income Required: (d) 490,170 (e) (e) 114,530 (f) (f) 168,190 1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers. On Company Letter Off Company a. $ 371,020 X 234,860 X b. $ 446,180 X 225,010 X C. 464,080 X 187,130 X d. 459,310 X $ 80,300 419,930 X 267,430 305,400 X 99,240 Feedback Check My Work 1. a. The cost of direct materials used in production includes the beginning materials inventory plus purchases, less the ending materials inventory. h. Total manufacturing costs incurred during December include direct materials direct labor and factory overhead 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 59,650 151,510 Cost of materials available for use 211,160 Materials inventory, December 31 51,300 Cost of direct materials used in production 159,860 Direct labor 224,880 Factory overhead 69,790 Total manufacturing costs incurred during December Total manufacturing costs Work in process Inventory, December 31 Cost of goods manufactured Feedback 114,530 446,180 X 569,060 96,630 464,080 X Prepare mpany Sales Cost of goods sold: On Company Income Statement For the Month Ended December 31 Finished goods inventory, December 1 100,810 Cost of goods manufactured 464,080 X Cost of finished goods available for sale 564,890 X Finished goods inventory, December 31 105,580 Cost of goods sold Gross profit Operating expenses Net income 879,240 419,930 X 114,530 305,400 X Feedback Check My Work 3. Sales minus cost of goods sold equals gross profit. Cost of goods sold is equal to beginning Finished Goods plus Cost of Goods Manufactured less ending Finished Goods. Gross profit minus operating expenses equals net income