Manufacturing Income Statement, Statement of Cost of Goods Manufactured
Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December 2014:
| Grant
Company |
McClellan
Company |
|||
| Materials inventory, December 1 | $64,060 | $85,840 | ||
| Materials inventory, December 31 | (a) | 97,000 | ||
| Materials purchased | 162,710 | 193,140 | ||
| Cost of direct materials used in production | 171,680 | (a) | ||
| Direct labor | 241,510 | (b) | ||
| Factory overhead | 74,950 | 96,140 | ||
| Total manufacturing costs incurred during December | (b) | 555,380 | ||
| Total manufacturing costs | 611,130 | 762,250 | ||
| Work in process inventory, December 1 | 123,000 | 206,870 | ||
| Work in process inventory, December 31 | 103,780 | (c) | ||
| Cost of goods manufactured | (c) | 550,230 | ||
| Finished goods inventory, December 1 | 108,260 | 96,140 | ||
| Finished goods inventory, December 31 | 113,390 | (d) | ||
| Sales | 944,240 | 858,400 | ||
| Cost of goods sold | (d) | 555,380 | ||
| Gross profit | (e) | (e) | ||
| Operating expenses | 123,000 | (f) | ||
| Net income | (f) | 190,560 |
Required:
1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
| Letter | Grant Company | McClellan Company |
| a. | $ | $ |
| b. | $ | $ |
| c. | $ | $ |
| d. | $ | $ |
| e. | $ | $ |
| f. | $ | $ |
2. Prepare McClellan Company’s statement of cost of goods manufactured for December. Enter all amounts as positive numbers.
|
3. Prepare McClellan Company’s income statement for December.
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