# Income statement for a manufacturing company Two items are omitted from each of the following three lists of cost of goods sold data from a manufacturing company income statement. Determine the amounts of the missing items, identifying them by letter.

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

#### Solutions

Chapter
Section
Chapter 18, Problem 18.15EX
Textbook Problem

## Income statement for a manufacturing companyTwo items are omitted from each of the following three lists of cost of goods sold data from a manufacturing company income statement. Determine the amounts of the missing items, identifying them by letter.

Expert Solution
To determine

Income statement for a manufacturing company:

The income statement of merchandising business and manufacturing business differs mostly due to the reporting of the cost of merchandise available for sale and sold during the period.

Cost of goods sold:

Cost of goods sold is the accumulate total of all direct cost incurred in manufacturing the goods or the products which has been sold during a period. Cost of goods sold involves direct material, direct labor, and manufacturing overheads.

To determine: The amount of missing items in the income statement for a manufacturing company.

### Explanation of Solution

The missing items in the income statement for a manufacturing company are determined as follows:

 Particulars  $Finished goods inventory, June 1 116,600 38,880 (e) 920,000 Cost of goods manufactured 825,900 (c) 501,120 180,000 Cost of finished goods available for sale (a) 942,500 540,000 1,100,000 Less: Finished goods inventory, June 30 130,000 70,000 (f) 155,000 Cost of goods sold (b) 812,500 (d) 470,000 945,000 Table (1) Working notes: 1. 1. For (a), the amount is determined as follows: Cost of finished goods available for sale}[Finished goods inventory,June1+Cost ofgoods manufactured]=$116,600+$825,900=$924,500

(a)

1. 2. For (b), the amount is determined as follows:

Cost of goods sold[Cost of finished goods available for saleFinished goods inventory, June 30]=$942,500$130,000=$812,500 (b) 1. 3. For (c), the amount is determined as follows: Cost ofgoods manufactured[Cost of finished goods available for saleFinished goods inventory,June1]=$501,120$38,880=$474,120

(c)

1. 4

### Want to see the full answer?

Check out a sample textbook solution.See solution

### Want to see this answer and more?

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

See solution

Find more solutions based on key concepts
Show solutions
What are the major elements of Taylors scientific management?

Foundations of Business (MindTap Course List)

Which fluctuate morelong-term or short-term interest rates? Why?

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

Should an economic model describe reality exactly?

Essentials of Economics (MindTap Course List)

REPLACEMENT ANALYSIS The Dauten Toy Corporation currently uses an injection molding machine that was purchased ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)