Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Poor Vibrations, Inc., produces recordings of musical performance. A newly hired executive of the company has asked you to sort through the records and prepare

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Poor Vibrations, Inc., produces recordings of musical performance. A newly hired executive of the company has asked you to sort through the records and prepare a statement of the company's cost of goods manufactured. You find the following data from records prepared by Poor Vibrations, Inc., for the year ended December 31, 2019: $10,000 $19,000 $18,600 $18,100 Inventories: Beginning Direct Materials Inventory, January 1, 2019 Ending Direct Materials Inventory, December 31, 2019 Beginning Work in Process Inventory, January 1, 2019 Ending Work in Process Inventory, December 31, 2019 Beginning Finished Goods Inventory, January 1. 2019 Ending Finished Goods Inventory, December 31, 2019 Materials Purchases Direct Labor Indirect Labor Factory Utilities Expense $37,000 $9.000 $90,000 $72,000 $28,400 $13,000 Factory Utilities Expense Factory Supplies Expense Depreciation Expense--Factory Building Depreciation Expense--Factory Equipment Other Manufacturing Overhead $13,000 $9.200 $26.000 $18,600 $47.000 You also learn that sales for 2019 were $560,000, selling expenses were $92,000, and administrative expenses were $140,000. Required: A. Prepare a statement of cost of goods manufactured for Poor Vibrations for the year ended December 31, 2019 B. Ignoring income taxes for simplicity purposes, prepare an income statement for Poor Vibrations for the years ended December 31, 2019. D> E F H Dodner Company Income Statement Variable Costing For the Year Ended December 31, 2020 Sales Variable Costs: Cost of goods sold: Direct materials Direct labor Variable manufacturing overhead Total production cost Less: Inventory Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Net Income A B E F H 6 7 8 9 B 0 51 Dodner Company Income Statement-Absorption Costing For the Year Ended December 31, 2020 2 3 24 Sales Cost of goods sold: Direct materials Direct labor Manufacturing overhead Total production cost Less: Inventory Gross margin Selling and administrative expenses Net Income 5 36 7 E8 59 10 11 2 13 14 35 16 37 18 99 50 $1 52 Sheet1 Ready

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2020

Authors: Jeanette Landin

6th Edition

1260247961, 9781260247961

More Books

Students also viewed these Accounting questions

Question

=+b) Why is there no predictor variable for December?

Answered: 1 week ago

Question

How should a consultant be selected?

Answered: 1 week ago

Question

Why is a consulting contract needed?

Answered: 1 week ago