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This problem confuses me. Can someone look at this and help me understand how to do this please? Koufax Materials Corporation produces plastic products for
This problem confuses me. Can someone look at this and help me understand how to do this please?
Koufax Materials Corporation produces plastic products for home appliances and electronics. The financial department has produced the following information for the year ended December 31.
Administrative salaries | $ | 2,633,000 |
Depreciation on the administrative building | 1,150,000 | |
Depreciation on the manufacturing plant | 1,758,000 | |
Direct labor | 4,700,500 | |
Direct materials inventory, January 1 | 1,077,200 | |
Direct materials inventory, December 31 | 1,243,000 | |
Direct materials purchased during the year | 8,964,000 | |
Distribution costs | 665,000 | |
Finished goods inventory, January 1 | 1,650,000 | |
Finished goods inventory, December 31 | 1,377,500 | |
Indirect labor | 550,000 | |
Insurance (on manufacturing plant) | 61,200 | |
Legal fees | 504,300 | |
Maintenance (on the manufacturing plant) | 223,400 | |
Manufacturing plant utiities | 792,100 | |
Marketing costs | 757,250 | |
Other manufacturing plant costs | 638,880 | |
Sales revenue | 22,662,920 | |
Taxes (on manufacturing plant and property) | 223,600 | |
Work-in-process inventory, January 1 | 411,250 | |
Work-in-process inventory, December 31 | 404,700 | |
Required:
a. Prepare a cost of goods manufactured and sold statement.
b. Prepare an income statement.
KOUFAX MATERIALS CORP. Cost of Goods Manufactured and Sold Statement For the Year Ending December 31 Manufacturing costs: Direct materials: Manufacturing overhead: 0 Total overhead Total manufacturing costs Total cost of work-in-process during the year Costs of goods manufactured this year Cost of goods available for sale Cost of goods sold (to income statement)
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