he following data were taken from the records of Clarkson Co

he following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2017. Raw Materials Inventory 7/1/16 $48,000 Factory Insurance $4,600 Raw Materials Inventory 6/30/17 39,600 Factory Machinery Depreciation 16,000 Finished Goods Inventory 7/1/16 96,000 Factory Utilities 27,600 Finished Goods Inventory 6/30/17 75,900 Office Utilities Expense 8,650 Work in Process Inventory 7/1/16 19,800 Sales Revenue 534,000 Work in Process Inventory 6/30/17 18,600 Sales Discounts 4,200 Direct Labor 139,250 Plant Manager’s Salary 58,000 Indirect Labor 24,460 Factory Property Taxes 9,600 Accounts Receivable 27,000 Factory Repairs 1,400 Raw Materials Purchases 96,400 Cash 32,000

Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.)

Prepare an income statement through gross profit.

Prepare the current assets section of the balance sheet at June 30, 2017

Solution

A cost of goods manufactured schedule Raw Materials Inventory 7/1/16 $48,000 Add : Raw Materials Purchases $96,400 Less : Raw Materials Inventory 6/30/17 $39,600 Direct Material Used $104,800 Direct Labor $139,250 Manufacturing Overheads Factory Insurance $4,600 Factory Machinery Depreciation $16,000 Factory Utilities $27,600 Plant Manager’s Salary $58,000 Indirect Labor $24,460 Factory Property Taxes $9,600 Factory Repairs $1,400 Total Manufacturing overheads $141,660 Cost of Manufacturing for the year $385,710 Add :   Work in Process Inventory 7/1/16 $19,800 Total Work in process cost $405,510 Less : Work in Process Inventory 6/30/17 $18,600 Cost of Goods Manufactured $386,910 Income statement through gross profit. Sales Revenue $534,000 Less : Cost of goods sold Cost of goods Manufactured $386,910 Add : Finished Goods Inventory 7/1/16 $96,000 Less : Finished Goods Inventory 6/30/17 $75,900 Cost of goods sold $407,010 Gross Margin $126,990 Less : Selling and administrative expenses Office Utilities Expense $8,650 Sales Discounts $4,200 $12,850 Net Operating Income $114,140 Current assets section of the balance sheet at June 30, 2017 Current Assets   Cash $32,000 Accounts Receivable $27,000 Inventory - Raw Material Inventory $39,600 - Work in process Inventory $18,600 - Finished Goods Inventory $75,900 $134,100 Total Current Assets $193,100