PR 18-4B Manufacturing income statement, statement of cost of goods manufactured Several items are omitted from each of the following income statement and cost of goods manufactured statement data for the month of December 2012: Margo Company Rita Company Materials inventory, December 1 Materials inventory, December 31 Materials purchased Cost of direct materials used in production Direct labor Factory overhead $ 47,000 $ 139,500 (a) 65,100 202,000 (a) 227,000 (b) 277,000 412,300 106,000 182,900 Total manufacturing costs incurred in December (b) 1,085,000 Total manufacturing costs Work in process inventory, December 1. Work in process inventory, December 31 Cost of goods manufactured 695,000 1,233,800 85,000 148,800 123,000 (c) (c) 1,094,300 Finished goods inventory, December 1 160,000 192,200 Finished goods inventory, December 31 141,000 (d) Sales 805,000 1,388,800 Cost of goods sold (d) 1,103,600 Gross profit (e) (e) Operating expenses 84,000 (f) (f) 117,800 Net income Instructions 1. Determine the amounts of the missing items, entifying them by letter. 2. Prepare a statement of cost of goods manufactured for Margo Company. 3. Prepare an income statement for Margo Company. Margo Company Rita Company $ 139,500 Materials inventory, December 1 $ 47,000 Materials inventory, December 31 (a) 65,100 Materials purchased 202,000 Cost of direct materials used in production 227,000 @D (a) (b) 1 24 26 27 28 31 FIN3LDONDO35233 34 35 Direct labor 277,000 412,300 Factory overhead 106,000 182,900 Total manufacturing costs incurred in December (b) 1,085,000 Total manufacturing costs 695,000 1,233,800 Work in process inventory, December 1 85,000 148,800 Work in process inventory, December 31 123,000 (c) Cost of goods manufactured (c) 1,094,300 Finished goods inventory, December 1 160,000 192,200 Finished goods inventory, December 31 141,000 (d) 29 Sales 805,000 1,388,800 30 Cost of goods sold (d) 1,103,600 Gross profit (e) (e) Operating expenses 84,000 (f) Net income (f) 117,800 9 0 1 2 3 44 45 46 47 48 49 50 51 52 53 54 2. MARGO COMPANY Statement of Cost of Goods Manufactured For the Month Ended December 31, 2012 Work in process inventory, December 1, 2012 Direct materials: Cost of direct materials used in production Direct labor Factory overhead Total manufacturing costs incurred during December Total manufacturing costs Less: Cost of goods manufactured 55 3. 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 Sales Cost of goods sold: MARGO COMPANY Income Statement For the Month Ended December 31, 2012 Cost of finished goods available for sale Cost of goods sold Gross profit Operating expenses Net income