Manufacturing Income Statement, Statement of Cost of Goods ManufacturedSeveral items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December.OffOnCompanyCompanyMaterials inventory, December 1$69,410$87,460Materials inventory, December 31(a)98,830Materials purchased(a)176,300Cost of direct materials used in production(b)186,020Direct labor261,680196,79097,960Factory overhead81,210Total manufacturing costs incurred in December(b)565,870Total manufacturing costs662,180776,650133,270Work in process inventory, December 1210,780(c)Work in process inventory, December 31112,440Cost of goods manufactured(c)560,620Finished goods inventory, December 1117,30097,960(d)Finished goods inventory, December 31122,860Sales1,023,100874,600Cost of goods sold(d)565,870Gross profit(e)(e)(f)133,270Operating expenses(f)Net income194,160

Question
Asked Jul 6, 2019
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I need help solving this problem. The picture attached is the information which was given. I copy and pasted the part of the problem I need help completing which is asking for the statement of cost of goods manufactured. I found the values which were missing in the original information and have copy and pasted those values. Thanks!

a.

$59960

$84830

b.

$528820

$271120

c.

$549650

$216030

d.

$544090

$92710

e.

$479010

$457230

f.

$345740

$263070

 

3.  Prepare On Company's income statement for December.

On Company
Income Statement
For the Month Ended December 31
    $
Cost of goods sold:    
  $  
     
  $  
     
     
    $
     
    $
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
On
Company
Company
Materials inventory, December 1
$69,410
$87,460
Materials inventory, December 31
(a)
98,830
Materials purchased
(a)
176,300
Cost of direct materials used in production
(b)
186,020
Direct labor
261,680
196,790
97,960
Factory overhead
81,210
Total manufacturing costs incurred in December
(b)
565,870
Total manufacturing costs
662,180
776,650
133,270
Work in process inventory, December 1
210,780
(c)
Work in process inventory, December 31
112,440
Cost of goods manufactured
(c)
560,620
Finished goods inventory, December 1
117,300
97,960
(d)
Finished goods inventory, December 31
122,860
Sales
1,023,100
874,600
Cost of goods sold
(d)
565,870
Gross profit
(e)
(e)
(f)
133,270
Operating expenses
(f)
Net income
194,160
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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 On Company Company Materials inventory, December 1 $69,410 $87,460 Materials inventory, December 31 (a) 98,830 Materials purchased (a) 176,300 Cost of direct materials used in production (b) 186,020 Direct labor 261,680 196,790 97,960 Factory overhead 81,210 Total manufacturing costs incurred in December (b) 565,870 Total manufacturing costs 662,180 776,650 133,270 Work in process inventory, December 1 210,780 (c) Work in process inventory, December 31 112,440 Cost of goods manufactured (c) 560,620 Finished goods inventory, December 1 117,300 97,960 (d) Finished goods inventory, December 31 122,860 Sales 1,023,100 874,600 Cost of goods sold (d) 565,870 Gross profit (e) (e) (f) 133,270 Operating expenses (f) Net income 194,160

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Expert Answer

Step 1

Income Statement:

 

It includes the total cost incurred by the business and revenue earned by the business and difference of these two is income or loss of the business. If revenue is more than expense then the business earns income but if the expenses are more than revenue than a business suffers loss.

 

Step 2

Note: The given values of (a) to (f) are incorrect.

 

On Company’s income statement for the month ending December 31, using MS Excel with the appropriate formula is shown in the following table (all amounts are in the dollar):

 

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B A On Company Income Statement For the Month Ended December 31 1 2 3 1023100 4 Sales 5 Less: Cost of goods sold: 6 Finished goods inventory, December 1 7 Cost of goods manufactured 117300 |-662180-112440 B6+B7 8 Cost of finished goods available for sale 9 Less: Finished goods inventory, December 31 1228860 10 Gross profit 11 Less: Operating expenses -B8-B9 -C4-C9 133270 -C10-C11 12 Net Income

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Step 3

The results of the formulas used in the excel sheet are shown in the followin...

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B A C On Company Income Statement For the Month Ended December 31 1 2 3 1023100 4 Sales 5 Less: Cost of goods sold: 6 Finished goods inventory, December 1 7 Cost of goods manufactured 8 Cost of finished goods available for sale 9 Less: Finished goods inventory, December 31 10 Gross profit 11 Less: Operating expenses 12 Net Income 117300 549740 667040 122860 544180 478920 133270 345650

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