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	$90,830		$118,080
Materials inventory, December 31	(a)		133,430
Materials purchased	230,710		(a)
Cost of direct materials used in production	243,420		(b)
Direct labor	342,430		265,680
Factory overhead	106,270		132,250
Total manufacturing costs incurred in December	(b)		763,980
Total manufacturing costs	866,510		1,048,550
Work in process inventory, December 1	174,390		284,570
Work in process inventory, December 31	147,140		(c)
Cost of goods manufactured	(c)		756,890
Finished goods inventory, December 1	153,500		132,250
Finished goods inventory, December 31	160,770		(d)
Sales	1,338,830		1,180,800
Cost of goods sold	(d)		763,980
Gross profit	(e)		(e)
Operating expenses	174,390		(f)
Net income	(f)		262,140

Required:

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1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

Letter	On Company	Off Company
a.	$fill in the blank 92e327ff9fa4fd7_1	$fill in the blank 92e327ff9fa4fd7_2
b.	$fill in the blank 92e327ff9fa4fd7_3	$fill in the blank 92e327ff9fa4fd7_4
c.	$fill in the blank 92e327ff9fa4fd7_5	$fill in the blank 92e327ff9fa4fd7_6
d.	$fill in the blank 92e327ff9fa4fd7_7	$fill in the blank 92e327ff9fa4fd7_8
e.	$fill in the blank 92e327ff9fa4fd7_9	$fill in the blank 92e327ff9fa4fd7_10
f.	$fill in the blank 92e327ff9fa4fd7_11	$fill in the blank 92e327ff9fa4fd7_12

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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 (f).

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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

Indirect laborMachinery depreciationSuppliesWork in process inventory, December 1Work in process inventory, December 31			$- Select -
Direct materials:
Direct laborFactory overheadMaterials inventory, December 1Work in process inventory, December 1Work in process inventory, December 31	$- Select -
Factory overheadOperating expensesPurchasesSalesWork in process inventory, December 1	- Select -
Cost of direct materials usedCost of goods manufacturedCost of goods soldCost of materials available for useFactory overhead	$- Select -
Less cost of goods soldLess indirect laborLess materials inventory, December 31Less work in process inventory, December 1Less work in process inventory, December 31	- Select -
Cost of direct materials usedCost of goods manufacturedCost of goods soldCost of materials available for useFactory overhead		$- Select -
Cost of goods soldDirect laborIndirect laborWork in process inventory, December 1Work in process inventory, December 31		- Select -
Cost of materials available for useDirect materialsFactory overheadPurchasesWork in process inventory, December 31		- Select -
Total manufacturing costs incurred			fill in the blank cc8f44059ff1f87_17
Total manufacturing costs			$fill in the blank cc8f44059ff1f87_18
Less cost of materials available for useLess direct materialsLess materials inventory, December 31Less work in process inventory, December 1Less work in process inventory, December 31			- Select -
Cost of direct materials usedCost of goods manufacturedCost of goods soldCost of materials available for useFactory overhead			$- Select -

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2. The cost of goods manufactured is the beginning work in process plus the cost of direct materials used in production plus direct labor and factory overhead, less the ending work in process.

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3. Prepare On Company's income statement for December.

On Company Income Statement For the Month Ended December 31

Cost of goods manufacturedCost of finished goods available for saleGross profitIndirect laborSales		$- Select -
Cost of goods sold:
Finished goods inventory, December 1Finished goods inventory, December 31Gross operating expensesIndirect laborSales	$- Select -
Cost of direct materials usedCost of goods manufacturedCost of goods soldCost of materials available for useMaterials inventory, December 1	- Select -
Cost of direct materials used in productionCost of finished goods available for saleCost of goods manufacturedCost of materials available for useMaterials inventory, December 1	$- Select -
Less finished goods inventory, December 1Less finished goods inventory, December 31Less indirect laborLess operating expensesLess sales	- Select -
Cost of direct materials used in productionCost of goods manufacturedCost of goods soldCost of materials available for useMaterials inventory, December 1		- Select -
Cost of goods manufacturedCost of finished goods available for saleGross profitIndirect laborSales		$- Select -
Direct laborFactory overheadFinished goods inventory, December 1Indirect laborOperating expenses		- Select -
Net incomeNet loss		$- Select -