Question

NEXT Best, Co. manufactures computers. As of Dec 31, use the following information to determine: (assume 100% of Overhead is absorbed during the period) a. Cost of goods manufactured (completed jobs) b. Cost of goods sold c. Gross Profit d. Net Income Raw Materials Work In Process (WIP) Finished Goods (FG) Jan 1 $50,000 $98,000 $350,000 Dec 31 $21,000 $122,200 $-0- 히 1 198,1 Chief Financial Officer Salary saA Utilities -factory o H Depreciation of factory of Shop Foreman (suppervisors O $120,000 $125,000 - $79,900 - $29,000- $450,000 $398,700 $99,000 $51,000 $21,700 $1,750,000 $65,000 vMaterials purchased oH レSalary of assemblers o H Advertising expense on Repairs on Factory он Office Supplies Sales Warehouse Supplies o rT

Answer 1

Requirement a

Schedule of Cost of Goods Manufactured
Direct Material used
Beginning raw material Inventory	$      50,000.00
Raw material Purchased	$ 4,50,000.00
Raw material available for use	$ 5,00,000.00
Less: Ending Raw material Inventory	$      21,000.00
Direct Material Used		$     4,79,000.00
Direct labor (assemblers salary)		$     3,98,700.00
Manufacturing Overheads
Utilities - Factory	$ 1,25,000.00
Depreciation -Factory	$      79,900.00
Repair to factories	$      51,000.00
Total Manufacturing Overheads		$     2,55,900.00
Total manufacturing Cost		$ 11,33,600.00
Add: Work in process Beginning		$        98,000.00
Less: Work in process Ending		$     1,22,200.00
Cost of Goods Manufactured		$ 11,09,400.00

Requirement b

Cost of goods sold schedule
Beginning Finished goods inventory		$    3,50,000.00
Cost of Goods Manufactured		$ 11,09,400.00
Goods available for sales		$ 14,59,400.00
Less: Ending finished goods inventory		$                        -
Cost of goods sold`		$ 14,59,400.00

Requirement c and d

Gross profit $290,600

Net profit $(44100)

Income Statement
Sales Revenue		$ 17,50,000.00
Less: Cost of Goods Sold		$ 14,59,400.00
Gross Margin		$     2,90,600.00
Operating Expenses
General and administrative expenses
Chief financial officer salary	$ 1,20,000.00
Shop foreman	$      29,000.00
Office supplies	$      21,700.00
Selling expenses
Advertising expenses	$      99,000.00
Warehouse supplies	$      65,000.00
Total operating expenses		$     3,34,700.00
Net operating income		$      (44,100.00)