Respuesta :
Answer:
a. Statement of cost of goods manufactured
Opening Raw materials $ 33,000
Add: Raw materials purchased $ 84,000
Less: Closing Raw Materials $(22,000)
Total Raw Materials consumed $ 95,000
Add: Direct Labour $ 55,000
Add: Indirect Materials $ 10,000
Add: Manufacturing overhead applied $ 85,000
Total manufacturing costs input $ 245,000
Add: Opening work in process $ 25,000
Less: Closing work in process $ ( 44,000)
Cost of goods manufactured $ 226,000
b. Income statement
Sales $ 450,000
Less: Cost of goods sold $ 228,000
Gross Profit $ 222,000
Less: Selling, general and administrative expenses $ ( 58,000)
Net Income $ 164,000
Explanation:
For determining the cost of goods manufactured, we need to consider the inputs and adjust it for the opening and closing balances of Raw Materials and work in process.
Opening Raw materials $ 33,000
Add: Raw materials purchased $ 84,000
Less: Closing Raw Materials $(22,000)
Total Raw Materials consumed $ 95,000
Add: Direct Labour $ 55,000
Add: Indirect Materials $ 10,000
Add: Manufacturing overhead applied $ 85,000
Total manufacturing costs input $ 245,000
Add: Opening work in process $ 25,000
Less: Closing work in process $ ( 44,000)
Cost of goods manufactured $ 226,000
For determining the income statement, we need the the cost of goods sold, to compute that we adjust the difference in opening and closing finished goods
Add: Opening inventory: Finished Goods $ 60,000
Less: Closing Inventory: Finished Goods $ ( 58,000)
Total cost of goods sold $ 228,000
