Question

Instructions Amount Descriptions Statement of Cost of Goods Manufactured Income Statement Instructions The following information is available for Robstown Corporation for 20Y8: December 31 Inventories Materials Work in process Finished goods January 1 $44,250 63,900 101,200 80,000 99,800 December 31 Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment Direct labor $ 400,000 30,000 80,000 1,100,000 53,300 115,000 556,600 Heat, light, and power-factory Indirect labor Materials purchased Office salaries expense Property taxes-factory Property taxes-office building Rent expense-factory 318,000 40,000 25,000 Sales 27,000 3,850,000 200.000 Sales salaries expense Check My Work

Answer 1

Robstown Corporation
Statement of cost of goods manufactured
For the year ended December 20Y8
Work in process inventory, January 1, 20Y8			63900
Direct material cost:
Material inventory, January 1 20Y8	44250
Purchases	556600
Total raw material available	600850
Material inventory, December 31 20Y8	-31700
Cost of direct materials used in production		569150
Direct labor		1100000
Factory overhead:
Depreciation expense - factory equipment	80000
Heat, light and power - factory	53300
Indirect labor	115000
Property taxes - factory	40000
Rent expense - factory	27000
Supplies factory	9500
Miscellaneous costs - factory	11400
Total factory overhead		336200
Total manufacturing costs incurred in 20Y8			2005350
Total manufacturing costs			2069250
Work in process inventory, December 31, 20Y8			-80000
Cost of goods manufactured			1989250

Robstown Corporation
Income Statement
For the year ended December 20Y8
Sales			3850000
Cost of goods sold:
Finished inventory, January 1, 20Y8		101200
Cost of goods manufactured		1989250
Cost of goods sold available for sale		2090450
Finished inventory, December 31, 20Y8		-99800
Cost of goods sold			-1990650
Gross profit			1859350
Operating expenses:
Administrative expense
Property taxes - office building	25000
Depreciation expense - office equipment	30000
Office salaries expense	318000	373000
Selling expense:
Advertising expense	400000
Sales salaries expense	200000	600000
Total operating expense			-973000
Net income			886350