Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December On Off Company Company $86,850 $118,980 (a) 134,450 Materials inventory, December 1 Materials inventory, December 31 Materials purchased Cost of direct materials used in production 220,600 (a) 232,760 (b) 327,420 267,710 Direct labor 101,610 133,260 (b) 769,800 828,540 1,056,540 166,750 286,740 Factory overhead Total manufacturing costs incurred in December Total manufacturing costs Work in process inventory, December 1 Work in process inventory, December 31 Cost of goods manufactured Finished goods inventory, December 1 Finished goods inventory, December 31 140,700 (c) (c) 762,660 146,780 133,260 153,720 (d) 1,280,170 Sales (d) Cost of goods sold 1,189,800 769,800 (e) (0) Gross profit Operating expenses 166,750 264,140 Net income Required: 1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers. 1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers. Letter On Company off Company a. b. c. d. e. f. Feedback Check My Work 1. a. The cost of direct materials used in production includes the beginning materials inventory plus purchases, less the ending materials inventory. b. Total manufacturing costs incurred during December include direct materials, direct labor, and factory overhead c. The cost of goods manufactured is beginning work in process plus total manufacturing costs less the ending work in process. d. The cost of goods sold is the beginning finished goods plus the cost of goods manufactured, less the ending finished goods. e. Sales minus cost of goods sold equals gross profit. f. Gross profit minus operating expenses equals net income. Use similar relationships from On to find the missing amounts for the Off items (a) through (1). 2. Prepare On Company's statement of cost of goods manufactured for December. On Company Statement of Cost of Goods Manufactured For the Month Ended December 31 Work in process inventory, December 1 Direct materials: Materials inventory, December 1 Purchases Cost of direct materials used in production X Less materials inventory, December 31 Cost of direct materials used in production Direct labor Factory overhead Total manufacturing costs incurred during December Total manufacturing costs Less work in process inventory, December 31 Cost of goods manufactured Feedback Check My Work 2. The cost of goods manufactured is the beginning work in process plus the cost of direct materials used in production plus direct labor and factory overhead, less the ending work in process. 3. Prepare On Company's income statement for December On Company Income Statement For the Month Ended December 31 Sales Cost of goods sold: Finished goods inventory, December 1 Cost of goods sold x Cost of goods manufactured X Less finished goods inventory, December 31 Cost of goods manufactured X Sales X Operating expenses Net income Feedback Check My Work 3. Sales minus cost of goods sold equals gross profit. Cost of goods sold is equal to beginning Finished Goods plus Cost of Goods Manufactured less ending Finished Goods Gross profit minus operating expenses equals net income. Feedback Check My Work Partially correct Check My Work 1 more Check My Work uses remaining Previous