Question

Statement of Cost of Goods Manufactured and Income Statement
Information from the records of the Bridgeview Manufacturing Company for August 2017 follows:

Sales	$316,000
Selling and administrative expenses	127,500
Purchases of raw materials	46,000
Direct labor	30,000
Manufacturing overhead	56,500

		Inventories
		August 1	August 31
Raw materials		$ 9,000	$ 5,000
Work-in-process		15,000	11,000
Finished goods		15,000	20,000

Required
Prepare a statement of cost of goods manufactured and an income statement for August 2017.
Do not use negative signs with any of your answers below.

Bridgeview Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ending August 31, 2017
Current manufacturing costs:
Cost of materials placed in production:
Raw materials, 8/1/17	$Answer
Purchases	Answer
Total available	Answer
Raw materials, 8/31/17	Answer	$Answer
Direct labor		Answer
Manufacturing overhead		Answer	$Answer
Work-in-process, 8/1/17			Answer
Total costs in process			Answer
Work-in-process, 8/31/17			Answer
Cost of goods manufactured			$Answer

Bridgeview Manufacturing Company
Income Statement
For the Month Ending August 31, 2017
Sales			$Answer
Cost of goods sold
Finished goods inventory, 8/1/17		$Answer
Cost of goods manufactured		Answer
Total goods available for sale		Answer
Finished goods inventory, 8/31/17		Answer	Answer
Gross profit			Answer
Selling and administrative expenses			Answer
Net income			$Answer

Answer 1

Bridgeview Manufacturing Company

Statement of Cost of Goods Manufactured For the Month Ending August 31,2017

Current Manufacturing costs: Cost of materials placed in production: Raw materials, 8/1/17 $9,000 Purchases $46000 Total available $55000 Raw materials, 8/31/17 $5000 $50000 Direct labor $30000 Manufacturing overhead $56500 $136500 work-in-process, 8/1/17 $15000 Total cost in process $151500 work-in-process, 8/31/17 $11000 Cost of goods manufactured $140500

Note: 1  total available = raw material at 8/1/17 + purchases

2 the amount of raw material at 8/31/17 is substract from total available which is $5000

3 Total cost in process= Manufacturing overhead + work in process at 8/1/17

4 the amount of work in process is substract from total cost in process which is $11000

Bridgeview Manufacturing Comnpany

Income Statement For the Month Ending August 31,2017

Sales $316000 Cost of goods sold Finished goods inventory, 8/1/17 $15000 Cost of goods manufactured $140500 Total goods available for sale $155500 Finished goods inventory, 8/31/17 $20000 $135500 Gross profit $180500 Selling and administrative expenses $127500 Net income $53000

Note: 1 Cost of goodss manufactued is taken from Statement of Cost of Goods Manufactured .

2 Total goods available for sale = finished goods inventory at 8/1/17 + cost of goods manufactured.

3 Finished goods inventory at 8/31/17 is $20000. substract from total goods available for sale.

4 selling and administrative expenses is $127500 substract from gross profit.