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 May	(b)	2,484,200.00
9	Total manufacturing costs	5,998,500.00	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

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. For those boxes in which you must enter subtracted or negative numbers use a minus sign.*

c. Prepare Yakima Companys income statement for May. Enter all amounts as positive numbers.*

* Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

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 Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Yakima Company

Statement of Cost of Goods Manufactured

For the Month Ended May 31

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 Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers.

Yakima Company

Income Statement

For the Month Ended May 31

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