Problem 2

Materials inventory December 1, 2019 $45 Sales in December $448

Materials inventory December 31, 2019 21 Cost of goods sold 356

Material purchased during December (a) Gross profit (e)

WIP inventory December 1, 2019 48 Operating expenses (f)

WIP inventory December 31, 2019 45 Net income 38

Finished goods inventory December 1, 2019 62

Finished goods inventory December 1, 2019 (b)

Cost of goods manufactured (c)

Cost of direct materials used in production (d)

Direct labor used in December 133

Factory overhead applied in December 59

Total manufacturing costs incurred in December 350

Total manufacturing costs 398

1. Prepare a statement of cost of goods manufactured for The Company for the year ended December 31, 2019 in proper format.

2. Prepare an income statement for The Company for the year ended December 31, 2019 in proper format.

2. Complete the following:

a. d.

b. e.

c. f.

Problem 2 Materials inventory December 1, 2019 $45 Sales in December $448 Materials inventory December 31, 2019 21 Cost of goods sold 356 Material purchased during December (a) Gross profit (e) WIP inventory December 1, 2019 48 Operating expenses (f) WIP inventory December 31, 2019 45 Net income 38 62 (b) Finished goods inventory December 1, 2019 Finished goods inventory December 1, 2019 Cost of goods manufactured Cost of direct materials used in production (c) (d) Direct labor used in December 133 Factory overhead applied in December 59 Total manufacturing costs incurred in December 350 Total manufacturing costs 398 1. Prepare a statement of cost of goods manufactured for The Company for the year ended December 31, 2019 in proper format. 1. Prepare a statement of cost of goods manufactured for The Company for the year ended December 31, 2019 in proper format. 2. Prepare an income statement for The Company for the year ended December 31, 2019 in proper format. 2. Complete the following: a. d. b. C