On (a) Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December: Off Company Company Materials inventory, December 1 $86,215 $110,330 Materials inventory, December 31 (a) 124,705 Materials purchased 218,900 Cost of direct materials used in production 253,115 (6) Direct labor 325,010 248,280 Factory overhead 100,870 123,610 Total manufacturing costs incurred in December (b) 713,935 Total manufacturing costs 544,515 979,875 Work in process inventory, December 1 165,520 265,940 Work in process inventory, December 31 139,640 Cost of goods manufactured 707 320 Finished goods inventory, December 1 145,670 124,895 Finished goods inventory, December 31 152.570 Sales 1,270,720 1,103,540 Cost of goods sold (d) 715,225 Gross profit Operating expenses 165,510 243,755 Net income Required: 1. Determine the amounts of the missing Items, Identifying them by letter. Unter all amounts as positive numbers. On Company Letter of Company b d. 0. f. Feedback Chan My Wort 1. a. The cost of direct materials used in production includes the beginning materials inventory plus purchases, loss the 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 equal gross profit 1. Gross profit minus operating expenses equals net income Use similar relationships from On Company to find the missing amounts for the Off Company hema (a) through in 2. Prepare On Company's statement of cost of goods manufactured for December Note: If an amount should be subtracted, begin entry with a minus() sign Note: If an amount should be subtracted, begin entry with a minus (-) sign. 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 M.215 Purchases ? 218.900 165.520 Cost of materials available for use 305,115 v Materials inventory, December 31 ? OX Cost of direct materials used in production 253.115 Direct labor 325,010 100,870 Factory overhead ? Total manufacturing costs incurred during December USIS Total manufacturing costs 139.640 X Work in process inventory December 31 Cost of goods manufactured 3. Prepare On Company's income statement for December Note: If an amount should be subtracted, begin entry with a minus (-) sign. On Company Income Statement For the Month Ended December 31 Sales 1,270,720 1240195 x Cost of goods sold: Finished goods inventory, December 1 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 1 216.20 X 360570 X ? 253,115 X Cost of goods sold OX Gross profit Operating expenses 165.510 X ? ? Net income