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10E - Build A Spreadsheet 02-28

The document provides inventory and cost data for January 1st and December 31st of 20x1. It also includes raw materials purchased, direct labor expenses, and manufacturing overhead costs for the period. The summary schedules are: 1) Cost of Goods Manufactured of $827,000, 2) Cost of Goods Sold of $832,000, and 3) Income Statement showing Net Income of $177,450 after taxes of $95,550.

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67 views

10E - Build A Spreadsheet 02-28

The document provides inventory and cost data for January 1st and December 31st of 20x1. It also includes raw materials purchased, direct labor expenses, and manufacturing overhead costs for the period. The summary schedules are: 1) Cost of Goods Manufactured of $827,000, 2) Cost of Goods Sold of $832,000, and 3) Income Statement showing Net Income of $177,450 after taxes of $95,550.

Uploaded by

MISRET 2018 IEI JSC
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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DATA INPUT

Inventory Classification January 1, 20x1 December 31, 20x1


Raw material $ 55,000 $ 75,000
Work in process 110,000 125,000
Finished goods 160,000 155,000

Raw materials purchased 240,000


Direct labor expenses 420,000

Manufacturer overhead costs


Indirect material $ 12,000
Indirect labor 22,000
Depreciation 110,000
Utilities 23,000
Other 35,000

Sales revenue 1,210,000


Selling & Administrative 105,000

Tax rate 35%

SOLUTION

1. Schedule of Cost of Goods Manufactured

Direct Material:
Raw-material inventory $ 55,000
Add: Purchases of raw material 240,000
Raw material available for use $ 295,000
Deduct: Raw-material inventory, December 31 75,000
Raw material used $220,000
Direct labor 420,000
Manufacturing overhead:
Indirect material $ 12,000
Indirect labor 22,000
Depreciation on plant and equipment 110,000
Utilities 23,000
Other 35,000
Total manufacturing overhead 202,000
Total manufacturing costs $842,000
Add: Work-in-process inventory, January 1 110,000
Subtotal $952,000
Deduct: Work-in-process inventory, December 31 125,000
Cost of goods manufactured $827,000

2. Schedule of Cost of Goods Sold


Finished-goods inventory, January 1 $ 160,000
Add: Cost of goods available for sale 827,000
Deduct: Finished-goods inventory, December 31 $ 987,000
Cost of goods sold 155,000
$ 832,000

3. Income Statement
Sales revenue $1,210,000
Less: Cost of goods sold 832,000
Gross margin $ 378,000
Selling and administration expenses 105,000
Income before taxes $ 273,000
Income tax expense 95,550
Net income $ 177,450

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