Answer:
Required 1
Schedule of Cost of Goods Manufactured
Raw Materials Cost $41,000
Direct labor cost $23,000
Manufacturing overhead cost $59,000
Add Opening Work in process Inventory $18,000
Less Closing Work in process Inventory ($22,000)
Cost of Goods Manufactured $119,000
Required 2
Income Statement for April.
Sales $220,000
Less Cost of Goods Sold ($132,000)
Gross Profit $88,000
Less Expenses
Selling expense ($18,000 )
Administrative expense ($43,000) ($61,000)
Net Income / (Loss) $27,000
Explanation:
Determination of Raw Materials Cost in Production
Raw Materials T - Account
Debit :
Beginning Balance $26,000
Raw materials purchases $50,000
Totals $76,000
Credit :
Ending Balance $35,000
Work In Process (Balancing figure) $41,000
Totals $76,000
Determination of Cost of Goods Sold
Finished Goods Inventory T - Account
Debit :
Beginning Finished goods Inventory $42,000
Cost of Goods Manufactured $119,000
Totals $161,000
Credit:
Ending Finished goods Inventory $29,000
Trading Account (Balancing figure) $132,000
Totals $161,000
