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 $86,215 $110,330 Materials inventory, December 31 (a) 124,705 Materials purchased 218,900 (a) Cost of direct materials used in production 253,115 (b) Direct labor 325,010 248,280 Factory overhead 100,870 123,610 Total manufacturing costs incurred in December (b) 713,935 Total manufacturing costs 844,515 979,875 Work in process inventory, December 1 165,520 265,940 Work in process inventory, December 31 Cost of goods manufactured 139,640 (c) (c) 707,320 Finished goods inventory, December 1 Finished goods inventory, December 31 145,670 124,895 152,570 (d) Sales Cost of goods sold Gross profit Operating expenses 1,270,720 1,103,540 (d) 715,225 (e) (e) 165,510 (0) 243,755 Net income 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 d. f. Feedback Chack My Wor 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 Company to find the missing amounts for the Off Company items (a) through (0) 2. Prepare On Company's statement of cost of goods manufactured for December Note: If an amount should be subtracted, begin entry with a minus (-) sign. Note: If an amount should be subtracted, begin entry with a minus (-) sign. 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 86,215 Purchases 218,900 Cost of materials available for use 305.115 Materials inventory, December 31 x Cost of direct materials used in production 253,315 Direct labor Factory overhead Total manufacturing costs incurred during December Total manufacturing costs Work in process inventory, December 31 Cost of goods manufactured 325,010 100,870 165,520 $44,515 139,640 X 3. Prepare On Company's income statement for December. Note: If an amount should be subtracted, begin entry with a minus (-) sign. Sales On Company Income Statement For the Month Ended December 31 Cost of goods sold: Finished goods inventory, December 1 Cost of goods manufactured Cost of finished goods available for sale. Finished goods inventory, December 31 Cost of goods sold Gross profit Operating expenses Net income 124,395 218,900 X 364,570 X x 1,270,720 253,115 X X 165,510 X x