Problems 10-2 Determining income statement amounts for a manufacturer (LO10-1, LO10-3, LO10-12)

The following information pertains to Yuji Corporation:

	January 1, 20X1	December 31, 20X1
Raw materials inventory	$	34,000		$	38,000
Work-in-process inventory		126,000			145,000
Finished goods inventory		76,000			68,000

Costs incurred during the year 20X1 were as follows:

Raw material purchased	$	116,000
Wages to factory workers		55,000
Salary to factory supervisors		25,000
Salary to selling and administrative staff		40,000
Depreciation on factory building and equipment		10,000
Depreciation on office building		12,000
Utilities for factory building		5,000
Utilities for office building		7,500

Required:

Sales revenue during 20X1 was $300,000. The income tax rate is 21%. Compute the following:

Problems 10-2 Determining income statement amounts for a manufacturer (LO10-1, LO10-3, LO10-12)

The following information pertains to Yuji Corporation:

	January 1, 20X1	December 31, 20X1
Raw materials inventory	$	34,000		$	38,000
Work-in-process inventory		126,000			145,000
Finished goods inventory		76,000			68,000

Costs incurred during the year 20X1 were as follows:

Raw material purchased	$	116,000
Wages to factory workers		55,000
Salary to factory supervisors		25,000
Salary to selling and administrative staff		40,000
Depreciation on factory building and equipment		10,000
Depreciation on office building		12,000
Utilities for factory building		5,000
Utilities for office building		7,500

Required:

Sales revenue during 20X1 was $300,000. The income tax rate is 21%. Compute the following:

1.Cost of raw materials used

2.Cost of goods manufactured/completed

3.Cost of goods sold

4.Gross margin

5.Net income