Question

5) pa ng underlying the name of the W e ve me Beta company had the following inventory balances at the beginning and end of 20x1 Inventory classification January 1, 20x1 December 31, 2001 Raw Materials € 54.500 €65.700 Work in proces 36.900 €105.000 Finished goods E 102.000 E 124.000 During 20x1, the company purchased € 235.000 of raw material and spent € 198.000 for direct labor. Sales revenue was € 1.275.000 for the year. Selling and administrative expenses for the year amounted to € 267.000. 1 rate is 28% Manufacturing overhead costs were as follow: Indirect Material € 14.500: Indirect Labor € 27.000: Depreciation on pl equipment € 195.000; Utilities € 42.000; Other € 24.500 a) Prepare a schedule of cost of goods manufactured b) Prepare a schedule of cost of goods sold c) Prepare an income statement A h a Galinwine dats have been compiled for Beta's Painting Department for the month of June. Conversion actis

Q. (5)

Answer 1

	Schedule of Cost of Goods Manufactured
	For Year Ended Dec. 31, 2015
a)	Direct materials
	Beginning direct materials	$54,500
	Cost of direct materials purchased	$235,000
	Direct materials available for use	$289,500
	Less: Raw materials at END	$65,700
	Direct materials used		$223,800
	Direct labor		$198,000
	Factory Overhead
	Indirect material	$14,500
	Indirect labor	27000
	Depreciation	$195,000
	Utilities	$42,000
	Other expense	$24,500
	Total factory overhead costs		$303,000
	Total manufacturing costs		$724,800
	Add: Beginning work-in-process		$86,900
	Total cost of work in process		$811,700
	Less: Ending work-in-process		$105,000
	Cost of goods manufactured		$706,700
b)	Cost of goods manufactured		$706,700
	Add: Opening Finished goods		$102,000
	Less: Ending finished goods		$124,000
	Cost of goods sold		$684,700
c)	INCOME Statement
	Sales	$1,275,000
	Cost of goods sold	$684,700
	Gross profit	$590,300
	Operating expenses
	Selling and admin expenses	$267,000
	Income before tax	$323,300
	Tax @28%	$90,524
	NET INCOME	$232,776

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