RainierYakimaCompanyCompany$ 100,000$ 48,200Materials inventory, May 1Materials inventory, May 31Materials purchasedCost of direct materials used in production(a)50,000710,000950,000938,500(a)Direct labor2,860,000(b)Factory overheadTotal manufacturing costs incurred during MayTotal manufacturing costs446,0001,800,000(b)2,484,2005,598,5002,660,600Work in process inventory, May 1Work in process inventory, May 31Cost of goods manufacturedFinished goods inventory, May 1Finished goods inventory, May 31176,400400,000382,000(c)(c)2,491,500615,000190,000596,500(d)Sales9,220,0004,550,000(d)Cost of goods soldGross profitOperating expenses2,470,000(e)(e)(f)1,000,000(f)Net income1,500,000

Question
Asked Jan 15, 2020
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Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May.
Please see attachment
Instructions
1. Determine the amounts of the missing items, identifying them by letter.
2. Prepare Yakima Company’s statement of cost of goods manufactured for May.
3. Prepare Yakima Company’s income statement for May.

Rainier
Yakima
Company
Company
$ 100,000
$ 48,200
Materials inventory, May 1
Materials inventory, May 31
Materials purchased
Cost of direct materials used in production
(a)
50,000
710,000
950,000
938,500
(a)
Direct labor
2,860,000
(b)
Factory overhead
Total manufacturing costs incurred during May
Total manufacturing costs
446,000
1,800,000
(b)
2,484,200
5,598,500
2,660,600
Work in process inventory, May 1
Work in process inventory, May 31
Cost of goods manufactured
Finished goods inventory, May 1
Finished goods inventory, May 31
176,400
400,000
382,000
(c)
(c)
2,491,500
615,000
190,000
596,500
(d)
Sales
9,220,000
4,550,000
(d)
Cost of goods sold
Gross profit
Operating expenses
2,470,000
(e)
(e)
(f)
1,000,000
(f)
Net income
1,500,000
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Rainier Yakima Company Company $ 100,000 $ 48,200 Materials inventory, May 1 Materials inventory, May 31 Materials purchased Cost of direct materials used in production (a) 50,000 710,000 950,000 938,500 (a) Direct labor 2,860,000 (b) Factory overhead Total manufacturing costs incurred during May Total manufacturing costs 446,000 1,800,000 (b) 2,484,200 5,598,500 2,660,600 Work in process inventory, May 1 Work in process inventory, May 31 Cost of goods manufactured Finished goods inventory, May 1 Finished goods inventory, May 31 176,400 400,000 382,000 (c) (c) 2,491,500 615,000 190,000 596,500 (d) Sales 9,220,000 4,550,000 (d) Cost of goods sold Gross profit Operating expenses 2,470,000 (e) (e) (f) 1,000,000 (f) Net income 1,500,000

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