Prob. 15-5A (FIN MAN); Prob. 1-5A (MAN) 1. Robstown Corporation Statement of Cost of Goods Manufactured For the Year Ended December 31, 20Y8 Work in process inventory, January 1, 20Y8 Direct materials: Materials inventory, January 1, 20Y8 Purchases $ 63,900 $ 44,250 556,600 Cost of materials available for use $600,850 Materials inventory, December 31, 2018 (31,700) Cost of direct materials used in production $ 569,150 Direct labor 1,100,000 Factory overhead: Indirect labor $115,000 Depreciation expense-factory equipment 80,000 Heat, light, and power-factory 53,300 Property taxes-factory 40,000 Rent expense-factory 27,000 Supplies-factory Miscellaneous costs-factory 9,500 211,400 Total factory overhead 336,200 Total manufacturing costs incurred in 2018 2,005,350 Total manufacturing costs $2,069,250 Work in process inventory, December 31, 20Y8 Cost of goods manufactured (80,000) $1,989,250 Prob. 15-5A (FIN MAN); Prob. 1-5A (MAN) (Concluded) 2. Sales Cost of goods sold: Robstown Corporation Income Statement For the Year Ended December 31, 20Y8 Finished goods inventory, January 1, 20Y8 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 31, 2018 Cost of goods sold Gross profit Operating expenses: Administrative expenses: Office salaries expense Depreciation expense-office $ 101,200 1,989,250 $2,090,450 $3,850,000 (99,800) (1,990,650) $ 1,859,350 $318,000 equipment 30,000 Property taxes-office building 25,000 $ 373,000 Selling expenses: Advertising expense $400,000 Sales salaries expense 200,000 600,000 Total operating expenses (973,000) Net income $ 886,350 EX 15-10 Manufacturing company balance sheet Partial balance sheet data for Diesel Additives Company at August 31 are as follows: Finished goods inventory Prepaid insurance $89,400. 9,000 Accounts receivable 348,200 Supplies $13,800 Materials inventory 26,800 Cash 167,500 Work in process inventory 61,100 Prepare the "Current assets" section of Diesel Additives Company's balance sheet at August 31. Ex. 15-10 (FIN MAN); Ex. 1-10 (MAN) Diesel Additives Company Current assets: Cash Accounts receivable Inventories: Materials Work in process Finished goods Total inventories Supplies Prepaid insurance Total current assets Balance Sheet August 31 $167,500 348,200 $26,800 61,100 89,400 177,300 13,800 9,000 $715,800