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	$280,560.00	$176,000.00
3	Materials inventory, May 31	(a)	176,500.00
4	Materials purchased	712,400.00	340,400.00
5	Cost of direct materials used in production	752,800.00	(a)
6	Direct labor	1,058,000.00	(b)
7	Factory overhead	325,600.00	180,000.00
8	Total manufacturing costs incurred during May	(b)	1,034,000.00
9	Total manufacturing costs	2,677,200.00	1,477,000.00
10	Work in process inventory, May 1	540,800.00	443,000.00
11	Work in process inventory, May 31	451,800.00	(c)
12	Cost of goods manufactured	(c)	1,026,500.00
13	Finished goods inventory, May 1	479,200.00	202,500.00
14	Finished goods inventory, May 31	497,000.00	(d)
15	Sales	4,143,000.00	1,673,500.00
16	Cost of goods sold	(d)	1,045,000.00
17	Gross profit	(e)	(e)
18	Operating expenses	543,000.00	(f)
19	Net income	(f)	381,300.00

Required:

A.

Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

B.

Prepare Yakima Companys statement of cost of goods manufactured for May.*

C.

Prepare Yakima Companys income statement for May.*

*Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. Enter all amounts as positive numbers. Be sure to complete the statement heading.

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
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

Starting Question

A. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

Letter	Rainier Company	Yakima Company
a.
b.
c.
d.
e.
f.

Statement of Cost of Goods Manufactured

B. Prepare Yakima Companys statement of cost of goods manufactured for May. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. Enter all amounts as positive numbers. Be sure to complete the statement heading.

Yakima Company

Statement of Cost of Goods Manufactured

1
2	Direct materials:
3
4
5
6
7
8
9
10
11	Total manufacturing costs
12
13

Income Statement

C. Prepare Yakima Companys income statement for May. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. Enter all amounts as positive numbers. Be sure to complete the statement heading.

Yakima Company

Income Statement

1
2	Cost of goods sold:
3
4
5
6
7
8
9
10