Question

The following information is available for Robstown Corporation for 20Y8 Inventories Materials Work in process Finished goods January 1 $77,250 108,800 112,500 December 31 $93,600 96,700 108,400 Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment Direct labor Heat,light, and power-factory Indirect labor Materials purchased Office salaries expense Property taxes-factory Property taxes-office building Rent expense-factory Sales Sales salaries expense Supplies-factory Miscellaneous costs-factory December 31 $67,800 23,000 14,600 186,100 5,550 23,800 123,800 78,300 4,145 13,800 6,550 861,500 138,500 4,750 4,420

Answer 1

1) COST OF GOODS MANUFACTURED

Work in process inventory, January 1, 20Y8			108,800
Direct materials:
Materials inventory, January 1, 20Y8	77,250
Purchases	123,800
Cost of materials available for use	201,050
Materials inventory, December 31, 20Y8	93,600
Cost of direct materials used in production		107,450
Direct labor		186,100
Factory overhead:
Indirect labor	23,800
Depreciation expense - factory equipment	14,600
Heat, light, and power - factory	5,550
Property taxes - factory	4,145
Rent expense - factory	6,550
Supplies - factory	4,750
Miscellaneous cost - factory	4,420
Total factory overhead		63,815
Total manufacturing costs incurred during the year			357,365
Total manufacturing costs			466,165
Work in process inventory, December 31, 20Y8			-96,700
Cost of goods manufactured			369,465

2) INCOME STATEMENT

Sales			861,500
Cost of goods sold:
Finished goods inventory, January 1, 20Y8		112,500
Cost of goods manufactured		369,465
Cost of finished goods available for sale		481,965
Finished goods inventory, December 31, 20Y8		-108,400
Cost of goods sold			373,565
Gross profit			487,935
Operating expenses:
Administrative expenses:
Office salaries expense	78,300
Depreciation expense - office equipment	23,000
Property taxes - office building	13,800	115,100
Selling expenses:
Advertising expense	67,800
Sales salaries expense	138,500	206,300
Total operating expenses			321,400
NET INCOME			166,535