Legend Guitars

Statement of Cost of Goods Manufactured

Direct materials:
Materials inventory, January 1, 2010 -
Purchases 52,000
Cost of materials available for use 52,000
Less materials inventory, December 31, 2010 12,000
Cost of direct materials used 40,000
Direct labor 60,000
Factory overhead:
Indirect labor
Depreciation on factory equipment
Factory supplies and utility costs
Total factory overhead 84,000
Total manufacturing costs incurred 184,000
Work in process inventory, January 1, 2010 -
Total manufacturing costs 184,000
Less work in process inventory, December 31, 2010
Cost of goods manufactured 140,000
 Legend Guitars
Income Statement
For the Year Ended December 31, 2010

Sales 250,000
Cost of goods sold:
Finished goods inventory, January 1, 2010
Cost of goods manufactured 140,000
Cost of finished goods available for sale
Less finished goods inventory, December 31, 2010
Cost of goods sold 110,000
Gross profit 140,000
Operating expenses:
Selling expenses 64,000
Administrative expenses 28,000
Total operating expenses 92,000
Net income 48,000

Inventory Balance:
Materials 12,000
WIP 44,000
Finished Goods 30,000
 Legend Guitars
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 2010

Direct materials:
Materials inventory, January 1, 2010 -
Purchases 52,000
Cost of materials available for use 52,000
Less materials inventory, December 31, 2010 12,000
Cost of direct materials used 40,000
Direct labor 60,000
Factory overhead:
Indirect labor
Depreciation on factory equipment
Factory supplies and utility costs
Total factory overhead 84,000
Total manufacturing costs incurred 184,000
Work in process inventory, January 1, 2010 -
Total manufacturing costs 184,000
Less work in process inventory, December 31, 2010
Cost of goods manufactured 140,000
 Legend Guitars
Income Statement
For the Year Ended December 31, 2010 D

Sales 250,000
Cost of goods sold:
Finished goods inventory, January 1, 2010
Cost of goods manufactured 140,000
Cost of finished goods available for sale
Less finished goods inventory, December 31, 2010
Cost of goods sold 110,000
Gross profit 140,000
Operating expenses:
Selling expenses 64,000
Administrative expenses 28,000
Total operating expenses 92,000
Net income 48,000

Inventory Balance:
Materials 12,000
WIP 44,000
Finished Goods 30,000
 Legend Guitars
Balance Sheet
December 31, 2010

Current assests:
Cash 28,000
Accounts receivable (net) 26,000
Inventories:
Finished goods 10,000
Work in process 40,000
Materials 22,000 72,000
Supplies 18,000
Prepaid Insurance 10,000
Total current assets 154,000
 Mc Cain Company
Cost of Goods Sold Statement
For The Month Ending December 31, 2010

Direct Materials:
Materials inventory, beginning 175,000
Purchases of raw materials 336,000
Material available for use 511,000
Less: Materials inventory, ending 154,000
Direct Material Consumed 357,000
Direct Labor 315,000
Factory Overhead
Insurance, factory equipment 33,600
Utilities Factory 20,000
Indirect Labor 7,000
Cleaning Supplies 5,600
Rent Factory Building 4,900
Maintenance, factory 9,100 80,200
Total Manufacturing Cost 752,200
Add WIP beginning 119,000
Less WIP ending 133,000
COGM 738,200
Add finished good inventory 91,000
COGAS 829,200
Less finished good inventory 105,000
COGS 724,200
 Buffet Company
Cost of Goods Sold Statement
For The Month Ending December 31, 2010

Direct Materials:
Materials inventory, beginning 45,000
Purchases of raw materials 134,000
Material available for use 179,000
Less: Materials inventory, ending 21,000
Direct Material Consumed 158,000
Direct Labor 133,000
Factory Overhead
Insurance, factory equipment
Utilities Factory
Indirect Labor
Cleaning Supplies
Rent Factory Building
Maintenance, factory 59,000
Total Manufacturing Cost 350,000
Add WIP beginning 48,000
Less WIP ending 45,000
COGM 353,000
Add finished good inventory
COGAS
Less finished good inventory
COGS
 Mc Cain Company
Income Statement
For The Month Ending December 31, 2010

Sales 595,000
Cost of goods sold:
Finished goods inventory, January 1, 2010 91,000
Cost of goods manufactured 738,200
Cost of finished goods available for sale 829,200
Less finished goods inventory, December 31, 2010 105,000
Cost of goods sold 724,200
Gross profit - 129,200
Operating expenses:
Selling expenses -
Administrative expenses -
Total operating expenses 62,000
Net income - 191,200
 Buffet Company
Income Statement
For The Month Ending December 31, 2010

Sales 448,000
Cost of goods sold:
Finished goods inventory, January 1, 2010 62,000
Cost of goods manufactured 353,000
Cost of finished goods available for sale 415,000
Less finished goods inventory, December 31, 2010 59,000
Cost of goods sold 356,000
Gross profit 92,000
Operating expenses:
Selling expenses -
Administrative expenses -
Total operating expenses 54,000
Net income 38,000
 Grant
Cost of Goods Sold Statement
For The Month Ending December 31, 2010

Direct Materials:
Materials inventory, beginning 78,000
Purchases of raw materials 198,000
Material available for use 276,000
Less: Materials inventory, ending 67,000
Direct Material Consumed 209,000
Direct Labor 294,000
Factory Overhead
Depreciation expense—factory equipment
Heat, light, and power—factory
Indirect Labor
Property taxes—factory
Rent expense—factory
Miscellaneous cost—factory
Supplies—factory 91,000
Manufacturing Cost during December 594,000
Add WIP beginning 150,000
Total Manufacturing Cost 744,000
Less WIP ending 126,000
COGM 618,000
Add finished good inventory 132,000
COGAS 750,000
Less finished good inventory 138,000
COGS 612,000
 Buffet Company
Cost of Goods Sold Statement
For The Month Ending December 31, 2010

Direct Materials:
Materials inventory, beginning 102,000
Purchases of raw materials 230,000
Material available for use 332,000
Less: Materials inventory, ending 115,000
Direct Material Consumed 217,000
Direct Labor 329,000
Factory Overhead
Depreciation expense—factory equipment
Heat, light, and power—factory
Indirect Labor
Property taxes—factory
Rent expense—factory
Miscellaneous cost—factory
Supplies—factory 114,000
Manufacturing Cost during December 660,000
Add WIP beginning 246,000
Total Manufacturing Cost 906,000
Less WIP ending 252,000
COGM 654,000
Add finished good inventory 114,000
COGAS 768,000
Less finished good inventory 108,000
COGS 660,000
 Grant
Income Statement
For The Month Ending December 31, 2010

Sales 1,150,000
Cost of goods sold:
Finished goods inventory, January 1, 2010 132,000
Cost of goods manufactured 618,000
Cost of finished goods available for sale 750,000
Less finished goods inventory, December 31, 2010 138,000
Cost of goods sold 612,000
Gross profit 538,000
Operating expenses:
Selling expenses
Advertising expense
Sales salaries expense -
Administrative expenses
Depreciation expense—office equipment
Office salaries expense
Property taxes—office building -
Total operating expenses 150,000
Net income 388,000
 Buffet Company
Income Statement
For The Month Ending December 31, 2010

Sales 1,020,000
Cost of goods sold:
Finished goods inventory, January 1, 2010 114,000
Cost of goods manufactured 654,000
Cost of finished goods available for sale 768,000
Less finished goods inventory, December 31, 2010 108,000
Cost of goods sold 660,000
Gross profit 360,000
Operating expenses:
Selling expenses
Advertising expense
Sales salaries expense -
Administrative expenses
Depreciation expense—office equipment
Office salaries expense
Property taxes—office building -
Total operating expenses 134,000
Net income 226,000
 Mc Cain Company
Cost of Goods Sold Statement
For The Month Ending December 31, 2010

Direct Materials:
Materials inventory, beginning 225,000
Purchases of raw materials 423,000
Material available for use 648,000
Less: Materials inventory, ending 280,000
Direct Material Consumed 368,000
Direct Labor 430,000
Factory Overhead
Depreciation expense—factory equipment 36,000
Heat, light, and power—factory 14,400
Indirect Labor 50,400
Property taxes—factory 11,700
Rent expense—factory 19,800
Miscellaneous cost—factory 6,120
Supplies—factory 9,900 148,320
Total Manufacturing Cost 946,320
Add WIP beginning 405,000
Less WIP ending 380,000
COGM 971,320
Add finished good inventory 390,000
COGAS 1,361,320
Less finished good inventory 380,000
COGS 981,320
 Buffet Company
Cost of Goods Sold Statement
For The Month Ending December 31, 2010

Direct Materials:
Materials inventory, beginning 45,000
Purchases of raw materials 134,000
Material available for use 179,000
Less: Materials inventory, ending 21,000
Direct Material Consumed 158,000
Direct Labor 133,000
Factory Overhead
Insurance, factory equipment
Utilities Factory
Indirect Labor
Cleaning Supplies
Rent Factory Building
Maintenance, factory 59,000
Total Manufacturing Cost 350,000
Add WIP beginning 48,000
Less WIP ending 45,000
COGM 353,000
Add finished good inventory
COGAS
Less finished good inventory
COGS
 Mc Cain Company
Income Statement
For The Month Ending December 31, 2010

Sales 1,980,000
Cost of goods sold:
Finished goods inventory, January 1, 2010 390,000
Cost of goods manufactured 971,320
Cost of finished goods available for sale 1,361,320
Less finished goods inventory, December 31, 2010 380,000
Cost of goods sold 981,320
Gross profit 998,680
Operating expenses:
Selling expenses
Advertising expense 190,000
Sales salaries expense 243,000 433,000
Administrative expenses
Depreciation expense—office equipment 27,000
Office salaries expense 147,500
Property taxes—office building 24,300 198,800
Total operating expenses 631,800
Net income 366,880
 Buffet Company
Income Statement
For The Month Ending December 31, 2010

Sales 448,000
Cost of goods sold:
Finished goods inventory, January 1, 2010 62,000
Cost of goods manufactured 353,000
Cost of finished goods available for sale 415,000
Less finished goods inventory, December 31, 2010 59,000
Cost of goods sold 356,000
Gross profit 92,000
Operating expenses:
Selling expenses -
Administrative expenses -
Total operating expenses 54,000
Net income 38,000