PART 1
The following information is available for the first month of operations of home center Company, A manufacturer of mechanical pencils:
|
Sales
|
Dh 486,000
|
|
Gross Profit
|
283,500
|
|
Cost of goods manufactured
|
243,000
|
|
Indirect labor
|
105,300
|
|
Factory depreciation
|
16,200
|
|
Materials purchased
|
149,850
|
|
Total manufacturing costs for the period
|
279,450
|
|
Materials inventory
|
20,250
|
Using the above information, determine the following missing amounts:
a. Cost of goods sold
b. Finished goods inventory
c. Direct materials cost
d. Direct labor cost
e. Work in process inventory
PART 2
Several items are omitted from each of the following income statement and cost of goods manufactured statement data for the month of December 2016:
|
|
Home Center Company
|
Homes are US Company
|
|
Materials inventory. December I
|
Dh 78,750
|
Dh 67,500
|
|
Materials inventory, December 31
|
(a)
|
31,500
|
|
Materials purchased
|
337,500
|
(a)
|
|
Cost of direct materials used in production
|
378,000
|
237,000
|
|
Direct labor
|
461,250
|
199.500
|
|
Factory overhead
|
175,500
|
88,500
|
|
Total manufacturing costs incurred in December
|
(b)
|
525,000
|
|
Total manufacturing costs
|
1,156,500
|
(b)
|
|
Work in process inventory, December
|
366,750
|
72,000
|
|
Work in process inventory, December 31
|
204,750
|
(e)
|
|
Cost of goods manufactured
|
(c)
|
529,500
|
|
Finished goods inventory, December I
|
265,500
|
93,000
|
|
Finished goods inventory, December 31
|
234,000
|
(d)
|
|
Sales
|
1,338,750
|
672,000
|
|
Cost of goods sold
|
(d)
|
534,000
|
|
Gross profit
|
|
(e)
|
|
Operating expenses
|
139.500
|
(1)
|
|
Net income
|
(0
|
57,000
|
Instructions
I. Determine the amounts of the missing items for Homes are Us Manufacturing Company, identifying them by letter.
2.Prepare a statement of cost of goods manufactured for Homes are US Manufacturing Company.
3.Prepare an income statement for Homes are US Manufacturing Company.