Question
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
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 | Off Company | |||
| Materials inventory, December 1 | $86,200 | $110,300 | ||
| Materials inventory, December 31 | (a) | 124,710 | ||
| Materials purchased | 218,900 | (a) | ||
| Cost of direct materials used in production | 254,100 | (b) | ||
| Direct labor | 325,000 | 248,270 | ||
| Factory overhead | 100,860 | 123,590 | ||
| Total manufacturing costs incurred in December | (b) | 713,865 | ||
| Total manufacturing costs | 845,480 | 979,805 | ||
| Work in process inventory, December 1 | 165,520 | 265,940 | ||
| Work in process inventory, December 31 | 139,650 | (c) | ||
| Cost of goods manufactured | (c) | 707,260 | ||
| Finished goods inventory, December 1 | 145,660 | 124,765 | ||
| Finished goods inventory, December 31 | 152,590 | (d) | ||
| Sales | 1,270,720 | 1,103,580 | ||
| Cost of goods sold | (d) | 715,025 | ||
| Gross profit | (e) | (e) | ||
| Operating expenses | 165,540 | (f) | ||
| Net income | (f) | 244,015 | ||
Required:
1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
| Letter | On Company | Off Company |
| a. | $ | $ |
| b. | $ | $ |
| c. | $ | $ |
| d. | $ | $ |
| e. | $ | $ |
| f. | $ | $ |
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.
| 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 | $ | ||
| Materials inventory, December 31 | |||
| Cost of direct materials used in production | $ | ||
| Direct labor | |||
| Factory overhead | |||
| Total manufacturing costs incurred during December | |||
| Total manufacturing costs | $ | ||
| Work in process inventory, December 31 | |||
| Cost of goods manufactured | $ | ||
3. Prepare On Company's income statement for December.
Note: If an amount should be subtracted, begin entry with a minus (-) sign.
| 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 | $ | |
| Finished goods inventory, December 31 | ||
| Cost of goods sold | ||
| Gross profit | $ | |
| Operating expenses | ||
| Net income | $ | |
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The Internal Auditors Guide To Risk Assessment
Authors: Rick A. Wright Jr.
2nd Edition
1634540158, 9781634540155
