Question

The following information is available for Aikman Company.

		January 1, 2020		2020		December 31, 2020
Raw materials inventory		$21,950				$31,370
Work in process inventory		18,360				18,110
Finished goods inventory		28,500				23,650
Materials purchased				$153,710
Direct labor				223,790
Manufacturing overhead				181,740
Sales revenue				902,150

Part 1

Compute cost of goods manufactured.

Aikman Company Cost of Goods Manufactured Schedule

						$

		$

:

				$

:

$

eTextbook and Media

Attempts: 0 of 3 used

Using multiple attempts will impact your score.

10% score reduction after attempt 2

Part 2

Prepare an income statement through gross profit.

AIKMAN COMPANY Income Statement (Partial)

				$

		$

:

$

eTextbook and Media

Attempts: 0 of 3 used

Using multiple attempts will impact your score.

10% score reduction after attempt 2

Part 3

Show the presentation of the ending inventories on the December 31, 2020, balance sheet.

AIKMAN COMPANY (Partial) Balance Sheet

			$

					$

Answer 1

Part 1

Compute cost of goods manufactured.

$ 18360 AIKMAN COMPANY Cost % Grods Manufactured Schedule $ $ work in process Inventory Direct materials Raw materials inventory 21950 Materials Purchased 153710 Materials Available for use 175660 Less: Raw materials Inventory 31370 Direct matevals used 144290 Direct labour Manufacturing overhead Total manufacturing cost Total cost of wil inventory Less: wie Inventory costą gads manufactured 223790 18/140 549820 568180 18110 $ 550070

Part 2&3

2 AlkmAN COMPANY Income State ment For the year ended Dec. 31, 2020 Sales revenue 902150 28500 cest of goods sold Finish goods inverlang cost z goods manufactured Cost z gads availöble for sale lois : Finish goods inuentorn cost of goods sold moss profit 550070 578570 23650 554920 347230 3. Alkman COMPANY Balance sheet (Partial) cament Assets Inventories Finished goods Work in Process Raw material 23650 18110 31370 $73130