Question

Koufax Materials Corporation produces plastic products for home appliances and electronics. The fir the following information for the year ended December 31. Administrative salaries Depreciation on the administrative building Depreciation on the manufacturing plant Direct labor Direct materials inventory, January 1 Direct materials inventory, December 31 Direct materials purchased during the year Distribution costs Finished goods inventory, January 1 Finished goods inventory, December 31 Indirect labor Insurance (on manufacturing plant) Legal fees Maintenance on the manufacturing plant) Manufacturing plant utiities Marketing costs other manufacturing plant costs Sales revenue Taxes (on manufacturing plant and property) Work-in-process inventory, January 1 Work-in-process inventory, December 31 $ 2,642,000 1, 159,000 1, 767,000 4,709,500 1,086, 200 1, 252,000 8,973,000 674,000 1,659,000 1,386,500 559,000 70,200 513, 300 232,400 801, 100 766, 250 647, 880 22,671, 920 232, 600 420, 250 413, 700 Required: a. Prepare a cost of goods manufactured and sold statement b. Prepare an income statement.

Answer 1

$ 86,72,700 47,09,500 $ Statement of Cost of good manufactured Direct materials: Beginning of direct material $ 10,86,200 Add: Purchases $ 89,73,000 Direct materials avaliable $ 1,00,59,200 Less:Ending direct material $ -13,86,500 Direct materials used Direct Labour Manufactured overhead: Depreciation on the manufacturing plant $ 17,67,000 Indirect labour $ 5,59,000 Insurance (manufacturing plant) $ 70,200 Maintenance (manufacturing plant) $ 2,32,400 Manufacturing plant utilities $ 8,01,100 Other manufacturing plant costs $ 6,47.880 Taxes(manufacturing plant& property) $ 2,32,600 Total Manufacturing overhead Total Manufacturing costs Add: Beginning Work in process inventory Less: Ending work in process inventory Cost of goods manufactured $ $ $ $ 43,10,180 1,76,92,380 4,20,250 -4,13,700 1,76,98,930 $ Statement of cost of goods statement Cost of goods manufactured $ 1,76,98,930 Add:Beginning of finished goods inventory $ 16,59,000 Less:Ending of finished goods inventory $ -13,86,500 Cost of goods statement $ 1,79,71,430 Statement of Income Sales revenue Less:Cost of good sold Gross profit Less: Admini. Salaries Depreciation on the administrative building Distribution costs Legal fees Marketing costs Net Income $ 2,26,71,920 $ -1,79,71,430 S 47,00,490 -26,42,000 $ -11,59,000 -6,74,000 $ -5,13,300 $ -7,66,250 $ 1,04,55,040