Q29PGA Preparing a schedule of cost of ... [FREE SOLUTION]

Chapter 16: Q29PGA (page 896)

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 Elly Manufacturing Company. Fill in the blanks with the missing words, and replace the Xs with the correct amounts.
Beginning Direct Ending Direct Direct Manufacturing Overhead Total Total Ending Direct Materials Beginning Direct Materials Purchases of Direct Materials $ 27,000 $ X $ X X X (25,000) 180,000 44,000 $ X 56,000 84,000 (20,000) ELLY MANUFACTURING COMPANY
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 $ X 232,000 258,000 X 160,000 98,000 $ 110,000 X X X E

Expert verified

The Cost of Goods Manufactured are $182,000 and the net operating income is $98,000.

Elly Manufacturing Company
Income Statement
Month Ended June 30, 2018
	Amount ($)	Amount ($)	Amount ($)

Beginning WIP Inventory			$27,000
Direct Material used:
Beginning Direct Material	$28,000
Purchases of direct material	56,000
Direct Material available for use	84,000
Ending Direct Materials	-20,000
Direct Materials Used		64,000
Direct Labor		72,000
Manufacturing overhead		44,000
Total manufacturing cost incurred during the month			180,000
Total manufacturing costs to account for			207,000
Ending WIP Inventory			25,000
Cost of goods manufactured			$182,000

Working Notes: Missing amounts

Beginning Direct materials:
Direct material available for use	$84,000
Purchases of direct material	-56,000
Beginning Direct materials	$28,000

Direct materials Used:
Ending materials available for use	$84,000
Ending Direct Materials	-20,000
Direct materials used	$64,000

Direct Labor:
Total manufacturing costs incurred during the month	$180,000
MOH	-44,000
Direct materials used	-64,000
Direct Labor	$72,000

Total Manufacturing Costs to Account For:
Beginning Work-in-Process Inventory	$27,000
Total Manufacturing Costs Incurred During the Month	180,000
Total Manufacturing Costs to Account For	$207,000

Cost of Goods Manufactured:
Total Manufacturing Costs to Account For	$207,000
Ending Work-in-Process Inventory	-25,000
Cost of Goods Manufactured	$182,000

Elly Manufacturing Company
Income Statement
Month Ended June 30, 2018
	Amount ($)	Amount ($)
Net Sales Revenue		$490,000
Cost of goods Sold
Beginning finished goods inventory	$110,000
Cost of goods manufactured	182,000
Cost of goods available for sales	292,000
Ending Finished goods inventory	-60,000
Cost of goods sold		232,000
Selling and administrative Expenses:		258,000
Selling Expenses	98,000
Administrative Expenses	62,000
Total Selling and administrative Expenses		160,000
Operating Income		$98,000

Working Notes: Missing Amounts

Net Sales Revenue:
Cost of goods sold	$232,000
Gross Profit	258,000
Net Sales Revenue	$490,000

Cost of Goods Available for sale:
Beginning FG Inventory	$110,000
COGM	182,000
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	$160,000
Selling Expenses	-98,000
Administrative Expenses	$62,000

Operating Income:
Gross Profit	$258,000
Total selling and administrative expenses	-160,000
Operating Income	$98,000

Unlock Step-by-Step Solutions & Ace Your Exams!

Over 30 million students worldwide already upgrade their learning with 91影视!

All the tools & learning materials you need for study success - in one app.

Recommended explanations on Business Studies Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.