Question
Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May: 1
Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May:
1 | Rainier Company | Yakima Company | |
2 | Materials inventory, May 1 | $100,000.00 | $48,200.00 |
3 | Materials inventory, May 31 | (a) | 50,000.00 |
4 | Materials purchased | 950,000.00 | 710,000.00 |
5 | Cost of direct materials used in production | 938,500.00 | (a) |
6 | Direct labor | 2,860,000.00 | (b) |
7 | Factory overhead | 1,800,000.00 | 446,000.00 |
8 | Total manufacturing costs incurred during May | (b) | 2,484,200.00 |
9 | Total manufacturing costs | 5,598,500.00 | 2,660,600.00 |
10 | Work in process inventory, May 1 | 400,000.00 | 176,400.00 |
11 | Work in process inventory, May 31 | 382,000.00 | (c) |
12 | Cost of goods manufactured | (c) | 2,491,500.00 |
13 | Finished goods inventory, May 1 | 615,000.00 | 190,000.00 |
14 | Finished goods inventory, May 31 | 596,500.00 | (d) |
15 | Sales | 9,220,000.00 | 4,550,000.00 |
16 | Cost of goods sold | (d) | 2,470,000.00 |
17 | Gross profit | (e) | (e) |
18 | Operating expenses | 1,000,000.00 | (f) |
19 | Net income | (f) | 1,500,000.00 |
C. | Prepare Yakima Companys income statement for May.*
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Labels and Amount Descriptions
Labels | |
For the Month Ended May 31 | |
For the Quarter Ended May 31 | |
For the Year Ended May 31 | |
Amount Descriptions | |
Cost of direct materials used in production | |
Cost of finished goods available for sale | |
Cost of goods manufactured | |
Cost of goods sold | |
Cost of materials available for use | |
Direct Labor | |
Factory overhead | |
Finished goods inventory, May 1 | |
Finished goods inventory, May 31 | |
Gross profit | |
Materials inventory, May 1 | |
Materials inventory, May 31 | |
Net income | |
Operating expenses | |
Purchases | |
Sales | |
Total manufacturing costs incurred during May | |
Work in process inventory, May 1 | |
Work in process inventory, May 31 |
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