Several items are omitted from the income statement and cost of goods manufactured statement data for two
Question:
Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May:
1 | Rainier Company | Yakima Company | |
2 | Materials inventory, May 1 | $100,000.00 | $48,200.00 |
3 | Materials inventory, May 31 | (a) | 50,000.00 |
4 | Materials purchased | 950,000.00 | 710,000.00 |
5 | Cost of direct materials used in production | 938,500.00 | (a) |
6 | Direct labor | 2,860,000.00 | (b) |
7 | Factory overhead | 1,800,000.00 | 446,000.00 |
8 | Total manufacturing costs incurred May | (b) | 2,484,200.00 |
9 | Total manufacturing costs | 5,998,500.00 | 2,660,600.00 |
10 | Work in process inventory, May 1 | 400,000.00 | 176,400.00 |
11 | Work in process inventory, May 31 | 382,000.00 | (c) |
12 | Cost of goods manufactured | (c) | 2,491,500.00 |
13 | Finished goods inventory, May 1 | 615,000.00 | 190,000.00 |
14 | Finished goods inventory, May 31 | 596,500.00 | (d) |
15 | Sales | 9,220,000.00 | 4,550,000.00 |
16 | Cost of goods sold | (d) | 2,470,000.00 |
17 | Gross profit | (e) | (e) |
18 | Operating expenses | 1,000,000.00 | (f) |
19 | Net income | (f) | 1,500,000.00 |
Required: | |||
a. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers. | |||
b. Prepare Yakima Company’s statement of cost of goods manufactured for May. For those boxes in which you must enter subtracted or negative numbers use a minus sign.* | |||
c. Prepare Yakima Company’s income statement for May. Enter all amounts as positive numbers.*
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Starting Question
a. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
Letter | Rainier Company | Yakima Company |
---|---|---|
a. | ||
b. | ||
c. | ||
d. | ||
e. | ||
f. |
Statement of Cost of Goods Manufactured
b. Prepare Yakima Company’s statement of cost of goods manufactured for May. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Yakima Company |
Statement of Cost of Goods Manufactured |
For the Month Ended May 31 |
1 | ||||||||||||||||||||||||||||||||||||||||||||
2 | Direct materials: | |||||||||||||||||||||||||||||||||||||||||||
3 | ||||||||||||||||||||||||||||||||||||||||||||
4 | ||||||||||||||||||||||||||||||||||||||||||||
5 | ||||||||||||||||||||||||||||||||||||||||||||
6 | ||||||||||||||||||||||||||||||||||||||||||||
7 | ||||||||||||||||||||||||||||||||||||||||||||
8 | ||||||||||||||||||||||||||||||||||||||||||||
9 | ||||||||||||||||||||||||||||||||||||||||||||
10 | ||||||||||||||||||||||||||||||||||||||||||||
11 | Total manufacturing costs | |||||||||||||||||||||||||||||||||||||||||||
12 | ||||||||||||||||||||||||||||||||||||||||||||
13 c. Prepare Yakima Company’s income statement for May. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers.
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Managerial Accounting
ISBN: 978-1337270595
14th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac