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.

	On Company		Off Company
Materials inventory, December 1	$74,780		$94,220
Materials inventory, December 31	(a)		106,470
Materials purchased	189,940		(a)
Cost of direct materials used in production	200,410		(b)
Direct labor	281,920		212,000
Factory overhead	87,490		105,530
Total manufacturing costs incurred in December	(b)		609,600
Total manufacturing costs	713,400		713,400
Work in process inventory, December 1	143,580		227,070
Work in process inventory, December 31	121,140		(c)
Cost of goods manufactured	(c)		603,950
Finished goods inventory, December 1	126,380		105,530
Finished goods inventory, December 31	132,360		(d)
Sales	1,102,260		942,200
Cost of goods sold	(d)		609,600
Gross profit	(e)		(e)
Operating expenses	157,270		(f)
Net income	(f)		229,130

Required:

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.	$	$

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
			$
Direct materials:
	$
	$
		$
Total manufacturing costs incurred during December
Total manufacturing costs			$
			$

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 manufactured
	$
Less finished goods inventory, December 31
Cost of goods sold
Cost of goods sold		$
Operating expenses
		$

Answer rating: 100% (QA)

Answer 1 On Company Cost of direct materials used in production Materials inventory December 1 Materials purchased Materials inventory December 31 200... View the full answer