Q. 17-23E Jordan Company has the following... [FREE SOLUTION]

Chapter 17: Q. 17-23E (page 945)

Jordan Company has the following information for the year ended December 31, 2018. Use the information to prepare a schedule of cost of goods manufactured and an income statement. Assume no indirect materials are used and all amounts are shown in millions.
Inventory balances:
Beginning
Ending
Work-in-process
$5
$16
Finished goods
12
15
Other information:
Sales revenue
$253
Selling and administrative expenses
85
Direct labor
62
Manufacturing overhead; actual and allocated
20
Direct materials used
31

Expert verified

The cost of goods manufactured by the company is $102 million and the net income is $69 million.

Particulars	Amount ($ in million)
Beginning WIP inventory	5
Add: Direct labor	62
Add: Manufacturing overhead (actual and allocated)	20
Add: Direct material used	31
Less: Closing WIP inventory	16
Cost of goods manufactured	102

Particulars	Amount ($ in million)
Net sales revenue	253
Less: Cost of goods sold:
Beginnnig finished goods inventory 12
Add: cost of goods manufactured 102
Less: Ending finished goods inventory (15)	99
Gross profit	154
Less: Selling and administrative expenses	85
Net Income	69

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June 1 balance	\(36,000
Direct materials used	32,000
Direct labor assigned to jobs	40,000
Manufacturing overhead allocated to jobs	28,000

Other information:
Sales revenue	$253
Selling and administrative expenses	85
Direct labor	62
Manufacturing overhead; actual and allocated	20
Direct materials used	31