Question

Exercise 3 Using the following information related to the activities performed by Beta Manufacturing in 2015 Inventories Work in process Materials Finished goods Beginning 8,800 6,800 14,500 Ending 9,000 9,500 8,300 Accounts payable Accounts receivable Advertising expense Depreciation of factory equipment Depreciation of office equipment Direct labor 15,900 22,500 15,200 12,300 8,500 124,000 8,800 97,000 13,800 32,800 6,350 4,850 12,000 6,800 850 98,500 Research and development expense12,500 858,000 13,900 547,000 scount on bond payable Income tax Indirect labor Interest expense Interest payable Lease of manufacturing equipment Own work capitalized Plant maintenance Prepaid lease expense Purchase of materials Retained earnings Sales commissions expense Sales revenue Required-Choosing only the appropriate data among those presented above: a) Prepare a statement of cost of goods manufactured for 2015 b) Prepare a statement of cost of goods sold for the same period. c) Prepare an income statement using the cost of goods sold format, clearly showing the gross margin from sales and the operating income d) Prepare an income statement using the value of production format, clearly showing the operating income.

Answer 1

Material Ledger Particulars Cost of Goods manufactured 2015: Direct materials used Beginning EndinE Particulars 95,800 Material Ledger 124,000 Already given 6,800.00 Workin process (Ralaicing fig 98,500.00 Closing Balance 95,0.0Dit abiour B,8009,000 Opieing Ralance 6,800 9,500 Materials purchased Materials 9,500.00Factory Overheac 105,300.00 Depreciation Factory cquipment 12,300 4,000 6,800 13,800 14,500 8,300 Adjusted prepaid lease. Already given Work in Process Ledger Plant maintenance 22,500Particulars 15,200 Opening Balance 12,300 Matcrials recd. 8,500 (Balancing figure) 36,900 256,0U 8,800 Finished Goods (Balancing figure) 95,800 Closing Balancc Manufacturing cost 95,600 9,000 Depreciation Factory equipment Add: Opcning WIP 104,600Less: Closing WIP 8,800 Alrcady Riven 9,DD0 Already givern Discount on bond payabla Finishad Goods Ledgor 14,500 Already given Add: Operning Finished Goods Less: Closing Finished Goods 97,DD Particulars 13,800OpeninE Balancc 32,BD0 Work in Process 6,350 Balancing figure) Particulars 14,500 Sales BalantiRure) 262,700 547,000.00 Lease manufacturing equipment Advertising Expense Depreciation office equipment 8,500 12,500 6,200

Income Statement Sales revenue 547,000 Variable Costs Direct materials used Direct Labour Indirect Labour Contribution Other operating cost Advertising Expense Depreciation office equipment Depreciation Factory equipment Lease manufacturing equipment Interest Expense R&D Expense Sales commission expense Operating Income 95,800 124,000 13,800 Material Ledger Already given 233,600 Already given 313,400.00 15,200 8,500 12,300 Already given Already given 4,000 32,800 12,500 13,90099,200.00 Already given Already given Already given 214,200.00