Schedules of Cost of Goods Manufactured and Sold | Income

School: Campbellsville University - Course: BA 637 - Subject: Accounting

Group Case 1 Group U by Teja Engilela (553863) Varun Chillamcharla (555563) Santhosh Reddy Puchkayala (554167) Santhosh Kumar Doulager (552752)

Group U- Case 1 Part A Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement Nish Corporation has provided the following data for the month of April: Sales...............................................$220,000 Raw materials purchases...............$50,000 Direct labor cost............................$23,000 Manufacturing overhead cost........$59,000 Selling expense..............................$18,000 Administrative expense.................$43,000 Inventories:BeginningEnding Raw materials........$26,000$35,000 Work in process.....$18,000$22,000 Finished goods.......$42,000$29,000 Required: a. Prepare a Schedule of Cost of Goods Manufactured in good form for April. b. Prepare an Income Statement in good form for April. Answers: a.Schedule of Cost of Goods Manufactured Direct materials: Beginning materials inventory...........................$26,000 Add: Purchases of raw materials........................50,000 Raw materials available for use..........................76,000 Deduct: Ending raw materials inventory............35,000 Raw materials used in production.........................$41,000 Direct labor............................................................23,000 Manufacturing overhead........................................59,000

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Group U- Case 1 Total manufacturing costs.....................................123,000 Add: Beginning work in process inventory...........18,000 Total:141,000 Deduct: Ending work in process inventory...........22,000 Cost of goods manufactured..................................$119,000 b.Income Statement Sales.......................................................................$220,000 Cost of goods sold: Beginning finished goods inventory...................$ 42,000 Add: Cost of goods manufactured......................119,000 Goods available for sale.....................................161,000 Deduct: Ending finished goods inventory..........29,000 Deducted Total........................................ 132,000 Gross margin..........................................................88,000 Selling and administrative expenses: Selling expenses.................................................18,000 Administrative expenses.....................................43,000 Total: 61,000 Net operating income.............................................$27,000 AACSB:Analytic AICPA BB:Critical Thinking AICPA FN:Reporting, Measurement LO:3,4 Level:Medium