Question

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and prepare cost of good manufactured statement, cost of goods sold statement, and income statement

Answer 1

Case A
Schedule of Cost of goods manufactured
Direct material consumed		$          15,000
Direct labor	$              5,000
Manufacturing overhead	$              8,000
Conversion cost		$          13,000
Current manufacture cost		$          28,000
add: work in process inventory, beginning		$            7,000
Total cost to be accounted for		$          35,000
less: work in process inventory, ending		$            5,000
Cost of goods manufactured		$          30,000
Total Direct Cost (Direct material + Direct labor)		$          20,000
Schedule of Cost of goods Sold
Cost of goods manufactured		$    30,000
Add: Finished goods inventory, beginning		$            9,000
Cost of goods available for sale		$          39,000
Less: Finished goods inventory, ending		$            6,000
Cost of goods sold		$          33,000
Income Statement
Sales		$          85,000
Less: Cost of goods sold		$          33,000
Gross profit		$          52,000
Less: Selling and Administrative expenses		$          20,000
Net income		$          32,000

Case B
Schedule of Cost of goods manufactured
Direct material consumed		$            21,000
Direct labor (32000-21000)	$ 11,000
Manufacturing overhead (26000-11000)	$ 15,000
Conversion cost		$            26,000
Current manufacture cost		$            47,000
add: work in process inventory, beginning		$            10,000
Total cost to be accounted for		$            57,000
less: work in process inventory, ending (57000-32000)		$            25,000
Cost of goods manufactured		$            32,000
Total Direct Cost (Direct material + Direct labor)		$            32,000
Schedule of Cost of goods Sold
Cost of goods manufactured		$     32,000
Add: Finished goods inventory, beginning		$              8,000
Cost of goods available for sale		$            40,000
Less: Finished goods inventory, ending (40000-35000)		$              5,000
Cost of goods sold		$            35,000
Income Statement
Sales (35000+37000)		$            72,000
Less: Cost of goods sold		$            35,000
Gross profit (15000+22000)		$            37,000
Less: Selling and Administrative expenses		$            15,000
Net income		$            22,000

Case C
Schedule of Cost of goods manufactured
Direct material consumed (95000-20000-10000)		$           65,000
Direct labor	$                20,000
Manufacturing overhead	$                10,000
Conversion cost		$           30,000
Current manufacture cost		$           95,000
add: work in process inventory, beginning
Total cost to be accounted for		$           95,000
less: work in process inventory, ending (95000-93000) (Hint: First check income statement, Cost of Goods sold and then You will get 93000)		$              2,000
Cost of goods manufactured		$           93,000
Total Direct Cost (Direct material + Direct labor)		$           85,000
Schedule of Cost of goods Sold
Cost of goods manufactured (10000-7000)		$    93,000
Add: Finished goods inventory, beginning		$              7,000
Cost of goods available for sale (92000+8000)		$         100,000
Less: Finished goods inventory, ending		$              8,000
Cost of goods sold (110000-18000)		$           92,000
Income Statement
Sales		$         110,000
Less: Cost of goods sold		$           92,000
Gross profit		$           18,000
Less: Selling and Administrative expenses (18000-12000)		$              6,000
Net income		$           12,000

Case D
Schedule of Cost of goods manufactured
Direct material consumed		$      21,000
Direct labor (30000-21000)	$            9,000
Manufacturing overhead (79000-30000)	$         49,000
Conversion cost		$      58,000
Current manufacture cost		$      79,000
add: work in process inventory, beginning		$      21,000
Total cost to be accounted for		$   100,000
less: work in process inventory, ending (100000-82000)		$      18,000
Cost of goods manufactured		$      82,000
Total Direct Cost (Direct material + Direct labor)		$      30,000
Schedule of Cost of goods Sold
Cost of goods manufactured		$ 82,000
Add: Finished goods inventory, beginning		$      12,000
Cost of goods available for sale		$      94,000
Less: Finished goods inventory, ending (94000-80000)		$      14,000
Cost of goods sold		$      80,000
Income Statement
Sales (80000+15000)		$      95,000
Less: Cost of goods sold		$      80,000
Gross profit		$      15,000
Less: Selling and Administrative expenses (15000-6000)		$        9,000
Net income		$        6,000