Assignment
Manufacturing costs/income statement
You are given the following information for a company and it appears to have a number of missing values.
For the Year ending December 31, 2014
Beginning direct materials inventory: $100
Purchases of direct materials: ($A)
Ending direct materials: $68
Direct materials used: $180
Direct labor: ($B)
Manufacturing overhead: $230
Total manufacturing costs added this period: ($C)
Beginning WIP inventory: $73
Ending WIP inventory:$ 44
Cost of Goods Manufactured: $775
Beginning FG inventory: $ 74
Ending FG inventory: ($D)
Cost of goods sold: $750
Net Sales: $1,200
Selling and administrative expenses: $270
Net income: ($E)
For the Year ending December 31, 2015
Beginning direct materials inventory: ($F)
Purchases of direct materials: $120
Ending direct materials: $90
Direct materials used: $98
Direct labor: $300
Manufacturing overhead: ($G)
Total manufacturing costs added this period: $690
Beginning WIP inventory: ($H)
Ending WIP inventory: $ 60
Cost of Goods Manufactured: ($I)
Beginning FG inventory: ($J)
Ending FG inventory: ($K)
Cost of goods sold: $650
Net Sales: $1,000
Selling and administrative expenses: ($L)
Net income: $110
Required:
1. Determine the correct amounts for A through L.
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A.
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G.
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B.
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H.
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C.
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I.
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D.
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J.
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E.
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K.
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F.
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L.
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2. Prepare the following journal entries for the year ending December 31, 2015
a. Purchase of direct materials (amount calculated in Part F.)
b. Direct labor used in production ($300)
c. Cost of goods manufactured (amount calculated in Part I.)
d. Sale and Cost of goods sold (Sales 1,000 and COGS $650).
3. Prepare an income statement for the year ending December 31, 2015.