AutoSave 3 H B = ExcelTemplatestignment, CHCI (1) - Protected viena File Home Insert Draw Page Layout Formulas Review ViewHelp Quicktoos PROTECTED VIEW Be carefules from the Internet can contain s Unless you need to edit safe to stay in Protected frated B8 X For the Month Ended October 31, 2017 4 1 P1-5A Prepare a cost of goods manufactured schedule and a correct income statement 2 Empire Company is a manufacturer of smart phones. Its controller resigned in October 2017. 3 An inexperienced assistant accountant has prepared the following income statement for 4 the month of October 2017. EMPIRE COMPANY income Statement For the Month Ended October 31, 2017 Sales Revenue $780,000 Less: Operating Expenses - Raw materials purchases $264.000 Direct labor costs 190.000 Advertising expense 90,000 Selling and administrative salaries 75,000 Rent on factory facilities 60,000 Depreciation on sales equipment 45,000 Depreciation on factory equipment 31,000 28,000 Indirect labor cost 12.000 Utilities expense 8,000 $803,000 Insurance expense ($23,000) Net loss E14 E1-12 E1-16 P14 P1-5A CDI Type here to search AutoSave - Excel Templatestignment CHCI) Protected File Home insert Draw P age Layout Formulas Data Review ViewH elp Quickboots O PROTECTED VIEW Be careful files from the Internet can contain virunes. Unless you need to edit it's sales to stay in Protected in. Erabile Editing fc For the Month Ended October 31, 2017 B8 x 4 22 Net loss ($23,000) 23 24 Prior to October 2017, the company had been profitable every month. The company's president is concerned 25 about the accuracy of the income statement. As her friend, you have been asked to review the income statement 26 and make necessary corrections. After examining other manufacturing cost data, you have acquired additional 27 information as follows. 28 1. Inventory balances at the beginning and end of October were: 29 30 October 1 October 31 31 Raw materials $18,000 $29,000 32 Work in process 20,000 14,000 Finished goods 30,000 50.000 25 2 Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative 37 activities. 38 39 Instructions 40 (a) Prepare a schedule of cost of goods manufactured for October 2017 41 (b) Prepare a correct income statement for October 2017 42 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" E1- 4 E1-12 E1-16 P1-44 P1-5A CD1 O Tune here to search AutoSave 5 BxcelTemplate Alignment Chor () Protected View Ex File Home Insert Draw Page Layout Formulas Data Review ViewHelp Quitos PROTECTED VIEW Be careful-files from the Internet can contain Vies. Unless you need to edit is set to stay in Protected Vie Enable Editing B8 - 1 x For the Month Ended October 31, 2017 A 45 (a) Prepare a schedule of cost of goods manufactured for October 2017 47 Value Value Value Value Value EMPIRE COMPANY Cost of Goods Manufactured Schedule For the Month Ended October 31, 2017 Work in process inventory, October 1 Direct materials Raw materials inventory, October 1 Raw materials purchases Total raw materials available for use Less: Raw materials inventory, October 31 Direct materials used Direct labor Manufacturing overhead Factory facility rent Depreciation on factory equipment Indirect labor Factory utilities Factory insurance Total manufacturing overhead Total manufacturing costs Total cost of work in process Less: Work in process, October 31 E1-4 E1-12 E1-16 P14 P1-5A CD1 Value Value Value Value Type here to search File Home Insert Drawe Page Layout Formulas Data Review View Help QuickBooks PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safe to stay in Protected View Enable Editing BS - X For the Month Ended October 31, 2017 Total cost of work in process Less: Work in process, October 31 Cost of goods manufactured ? Value 71 (b) Prepare a correct income statement for October 2017 Value EMPIRE COMPANY Income Statement For the Month Ended October 31, 2017 Sales Revenue Cost of goods sold Finished goods inventory, October 1 Value Cost of goods manufactured Cost of goods available for sale Less: Finished goods inventory, Octobe_Value Cost of goods sold Gross profit Operating expenses Advertising expense Value Selling and administrative salaries Value Depreciation expense - sales equipment Value Insurance expense E14 E1-12 E1-16 P14 P1-5A CD1 Type here to search O PROTECTED VIIW Be Carefules from the Internet can contain viruses. Unless you need to edits sales to stay in Prededo B8 r able Editing 1 X For the Month Ended October 31, 2017 Value ? ? Value Cost of goods sold Finished goods inventory, October 1 Cost of goods manufactured Cost of goods available for sale Less: Finished goods inventory, Octobe Cost of goods sold Gross profit Operating expenses Advertising expense Selling and administrative salaries Depreciation expense - sales equipment Insurance expense Utilities expense Total operating expenses Net income Value Value Value ? ? 95 After you have completed P1-5A, consider the additional question. 96 1. Assume that utilities expense and insurance expense changed to $15,000 and $9.000 respectively. Also assume that 80% of utilities expense and 65% of insurance expense apply to factory operations. Show the impact of these 98 changes on the cost of goods manufactured schedule and the income statement E1- 4 E -12 E1-16 P1-4A P1.5A CD1 3 Type here to search DOLL