Cost of Goods Manufactured Calculation and Corrected Income

School: University of British Columbia - Course: BUSI 294 - Subject: Accounting

1a.Finished good inventory and work in process inventory were not included in the incom b.Period cost and prodiuct cost are not clearly mentioned and differntiated 2SeylynnMountainSupplies Schedule of the cost of goods manufactured For the quarter ended, June 30th Raw material inventory: Beginning balance Add : Raw materials purchased Raw materials available for use Less : Raw material inventory Ending balance Raw materials used in production Direct labour Manufacturing overhead: Indirect labor Rent (80%*60000) Plant supplies Plant maintenance Insurance Depreciation Utilities (85%*32000) Total overhead cost Total manufacturing cost Add: Work in process inventory beginning balance Less: Work in process inventory ending balance Cost of goods manufactured 3Manufacture cost per sleeping bag= ( Cost of goods manufactured / 10000 ) COGS Calculation Finished goods inventory beginning balance Add: Cost of goods manufactured Less: Finished goods inventory ending balance [(10000-8500)*55.82] Cost of goods sold SeylynnMountainSupplies Corrected Income Statement For the Quarter ended June 30th Sales Less: Cost of goods sold (above) Gross margin Less: Selling and administrative salaries Rent Utilities Travel for sales purposes Advertising Depreciation, office equipment Total expense Operating Income