Several items are omitted from the income statement and cost of goods manufactured

The total cost of making and finishing a product.

statement data for two different companies for the month of December 2016:

Question not attempted.

1		Prius Company	Volt Company
2	Materials inventory, December 1	$280,000.00	$177,000.00
3	Materials inventory, December 31	(a)	175,000.00
4	Materials purchased	712,600.00	340,000.00
5	Cost of direct materials used in production	752,800.00	(a)
6	Direct labor	1,059,800.00	(b)
7	Factory overhead	326,600.00	179,400.00
8	Total manufacturing costs incurred during December	(b)	1,038,000.00
9	Total manufacturing costs	2,679,200.00	1,480,500.00
10	Work in process inventory, December 1	540,000.00	442,500.00
11	Work in process inventory, December 31	451,400.00	(c)
12	Cost of goods manufactured	(c)	1,026,500.00
13	Finished goods inventory, December 1	475,200.00	200,000.00
14	Finished goods inventory, December 31	495,600.00	(d)
15	Sales	4,142,000.00	1,679,000.00
16	Cost of goods sold	(d)	1,048,500.00
17	Gross profit	(e)	(e)
18	Operating expenses	545,000.00	(f)
19	Net income	(f)	384,100.00

Required:

A.

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

B.

Prepare Volt Companys statement of cost of goods manufactured for December.*

C.

Prepare Volt Companys income statement for December.*

* Refer to the 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.

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, December 1, 2016
Finished goods inventory, December 31, 2016
Gross profit
Materials inventory, December 1, 2016
Materials inventory, December 31, 2016
Net income
Operating expenses
Purchases
Sales
Total manufacturing costs incurred during December
Work in process inventory, December 1, 2016
Work in process inventory, December 31, 2016

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

Letter	Prius Company	Volt Company
a.
b.
c.
d.
e.
f.

B. Prepare Volt Companys statement of cost of goods manufactured for December. Refer to the 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.

Volt Company

Statement of Cost of Goods Manufactured

For the Month Ended December 31, 2016

1	Work in process inventory, December 1, 2016
2	Direct materials:
3	Materials inventory, December 1, 2016
4
5	materials inventory, December 31, 2016
6
7
8
9
10
11	Total manufacturing costs
12
13

Solution

Volt Company

Statement of Cost of Goods Manufactured

For the Month Ended December 31, 2016

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

C. Prepare Volt Companys income statement for December. Refer to the 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.

Volt Company

Income Statement

For the Month Ended December 31, 2016

1
2	Cost of goods sold:
3
4
5	Finished goods inventory, December 1, 2016
6
7
8
9
10

Volt Company