Question

The following information is available for Dynatech, Inc. for the fiscal year ending December 31, 2017:

ber 31, 07 is available for Dynatech, Inc. for the f Beginning balance in Work in Process Inventory Ending balance in Work in Process Inventory Beginning balance in Finished Goods Inventory Ending balance in Finished Goods Inventory Direct material cost Direct labor cost Manufacturing overhead Selling and administrative expenses Sales $150,000 280,000 450,000 380,000 2,100,000 2,700,000 1,400,000 1,250,000 7,200,000

Answer 1

Dynatech, Inc Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2017 Beginning balance in Work in Process inventory $150,000 Add Current manufacturing cost: Direct Material Direct labor Manufacturing Overhead $2,100,000 $2,700,000 $1,400,000 S6,200,000 Total Less: Ending balance in Work in Process inventory -S280,000 Cost of Goods Manufactured S6,070,000 Dynatech, Inc Income Statement For the Year Ended December 31, 2017 Sales $7,200,000 Less: Cost of Goods Sold $450,000 $6,070,000 S6,520,000 -$380.,000 Beginning Finished goods inventory Add: Cost of Goods Manufactured Cost of Goods available for sale Less: Ending Finished goods inventory $6,140,000 Gross profit $1,060,000 Less: Non-manufacturing Expenses Selling and Administrative Expenses $1,250,000 Net Income $190,000