The following information is available for Robstown Corporation for 20Y8: Inventories January 1 December 31 Materials $44,250 $31,700 Work in process 63,900 80,000 Finished goods 101,200 99,800 December 31 Advertising expense $ 400,000 Depreciation expense-office equipment 30,000 Depreciation expense-factory equipment 80,000 Direct labor 1,100,000 Heat, light, and power-factory 53,300 Indirect labor 115,000 Materials purchased 556,600 Office salaries expense 318,000 Property taxes-factory 40,000 Property taxes-office building 25,000 Rent expense-factory 27,000 Sales 3,850,000 Sales salaries expense 200,000 Supplies-factory 9,500 Miscellaneous costs-factory 11,400 a. Prepare the 20Y8 statement of cost of goods manufactured. For those boxes in which you must enter subtracted or negative numbers use a minus sign.* b. Prepare the 20Y8 income statement.
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Inventories
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January 1
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December 31
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| Materials | $44,250 | $31,700 |
| Work in process | 63,900 | 80,000 |
| Finished goods | 101,200 | 99,800 |
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December 31
|
| Advertising expense | $ 400,000 |
| 30,000 | |
| Depreciation expense-factory equipment | 80,000 |
| Direct labor | 1,100,000 |
| Heat, light, and power-factory | 53,300 |
| Indirect labor | 115,000 |
| Materials purchased | 556,600 |
| Office salaries expense | 318,000 |
| Property taxes-factory | 40,000 |
| Property taxes-office building | 25,000 |
| Rent expense-factory | 27,000 |
| Sales | 3,850,000 |
| Sales salaries expense | 200,000 |
| Supplies-factory | 9,500 |
| Miscellaneous costs-factory | 11,400 |
a. Prepare the 20Y8 statement of cost of goods manufactured. For those boxes in which you must enter subtracted or negative numbers use a minus sign.*
b. Prepare the 20Y8 income statement.
*Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
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Robstown Corporation Statement of Cost of Goods Manufactured For the Year Ended December 31, 20Y8 |
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Work in process inventory, January 1, 20Y8 |
$ 63,900 |
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Direct materials: |
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Materials inventory, January 1, 20Y8 |
$44,250 |
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Purchases |
556,600 |
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Cost of materials available for use |
$600,850 |
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Less materials inventory, December 31, 20Y8 |
31,700 |
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Cost of direct materials used in |
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production |
$569,150 |
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Direct labor |
1,100,000 |
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Factory overhead: |
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Indirect labor |
$115,000 |
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Depreciation expense—factory equipment |
80,000 |
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Heat, light, and power—factory |
53,300 |
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Property taxes—factory |
40,000 |
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Rent expense—factory |
27,000 |
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Supplies—factory |
9,500 |
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Miscellaneous cost—factory |
11,400 |
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Total factory overhead |
336,200 |
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Total manufacturing costs incurred during |
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the year |
2,005,350 |
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Total manufacturing costs |
$2,069,250 |
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Less work in process inventory, |
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December 31, 20Y8 |
80,000 |
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Cost of goods manufactured |
$1,989,250 |
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