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Q37PGB

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Horngren'S Financial And Managerial Accounting
Found in: Page 901

Short Answer

Preparing a schedule of cost of goods manufactured and an income statement for a manufacturing company

Certain item descriptions and amounts are missing from the monthly schedule of cost of goods manufactured and income statement of Charlie Manufacturing Company. Fill in the blanks with the missing words, and replace the Xs with the correct amounts.

ing Direct Ending Direct Direct Manufacturing Overhead Total Costs Total Costs Ending Direct Materials Beginning Direct Materials Purchases of Direct Materials $ 26,000 $ X $ X X X (29,000) 177,000 50,000 $ X 51,000 81,000 (26,000) C

Net Sales Revenue Cost of Goods Sold Total Income Cost of Goods Sold: Gross Profit Expenses: Selling Expenses Administrative Expenses Cost of Goods Ending Beginning $ X 232,000 268,000 X 150,000 90,000 $ 118,000 X X X $ X CHARLIE MANUFACTURING COMPANY June 30

The Cost of Goods Manufactured are $174,000 and the net operating income is $118,000.

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Step by Step Solution

Step-by-Step-SolutionStep 1 Completion of schedule of cost of goods manufactured

Elly Manufacturing Company
Income Statement
Month Ended June 30, 2018

Amount ($)

Amount ($)

Amount ($)

Beginning WIP Inventory

$26,000

Direct Material used:

Beginning Direct Material

$30,000

Purchases of direct material

51,000

Direct Material available for use

81,000

Ending Direct Materials

-26,000

Direct Materials Used

55,000

Direct Labor

72,000

Manufacturing overhead

50,000

Total manufacturing cost incurred during the month

177,000

Total manufacturing costs to account for

203,000

Ending WIP Inventory

-29,000

Cost of goods manufactured

$174,000

Working Notes: Missing amounts

Beginning Direct materials:

Direct material available for use

$81,000

Purchases of direct material

-51,000

Beginning Direct materials

$30,000

Direct materials Used:

Ending materials available for use

$81,000

Ending Direct Materials

-26,000

Direct materials used

$55,000

Direct Labor:

Total manufacturing costs incurred during the month

$177,000

MOH

-50,000

Direct materials used

-55,000

Direct Labor

$72,000

Total Manufacturing Costs to Account For:

Beginning Work-in-Process Inventory

$26,000

Total Manufacturing Costs Incurred During the Month

177,000

Total Manufacturing Costs to Account For

$203,000

Cost of Goods Manufactured:

Total Manufacturing Costs to Account For

$203,000

Ending Work-in-Process Inventory

-29,000

Cost of Goods Manufactured

$174,000

Step 2:  Completion of Income statement

Elly Manufacturing Company
Income Statement
Month Ended June 30, 2018

Amount ($)

Amount ($)

Net Sales Revenue

$500,000

Cost of goods Sold

Beginning finished goods inventory

$118,000

Cost of goods manufactured

174,000

Cost of goods available for sales

292,000

Ending Finished goods inventory

-60,000

Cost of goods sold

232,000

Selling and administrative Expenses:

268,000

Selling Expenses

90,000

Administrative Expenses

60,000

Total Selling and administrative Expenses

150,000

Operating Income

$118,000

Working Notes: Missing Amounts

Net Sales Revenue:

Cost of goods sold

$232,000

Gross Profit

268,000

Net Sales Revenue

$500,000

Cost of Goods Available for sale:

Beginning FG Inventory

$118,000

COGM

174,000

Cost of goods available for sale

$292.000

Ending Finished Goods Inventory:

Cost of goods available for sale

$292,000

COGS

-232,000

Ending FG Inventory

$60,000

Administrative Expenses:

Total selling and administrative expenses

$150,000

Selling Expenses

-90,000

Administrative Expenses

$60,000

Operating Income:

Gross Profit

$268,000

Total selling and administrative expenses

-150,000

Operating Income

$118,000

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