Schedule of Cost of Goods Manufactured and Sold At December

Schedule of Cost of Goods Manufactured and Sold At December 31, 2016, the end of its fiscal year, Lederman Manufacturing Corporation collected the following data for 2016 E2-1A. 25,000 5,000 30,000 3 3 Net delivered cost of materials purchased. . . . . . . . . . . . ..148,000 10,000 Selling expenses (total). Non-factory administrative expenses (total).. Prepare a schedule of cost of goods manufactured and sold for Lederman Manufacturing Corporation the year ended December 31, 2016, assuming that there were no other manufacturing overhead items than those listed above. E2-2A. Income Statement Lederman Manufacturing Corporation (see E2-1A) sold 15,000 units of product for $40 each during 2016. During the year, 5,000 shares of common stock were outstanding. Prepare an income statement for the year (ignore income taxes)

Solution

Statement of Cost of Goods Manufactured and Sold Amount Amount Amount Current manufacturing costs: Cost of materials placed in production: Opening Raw materials $               25,000 Add: Purchases $           1,25,000 Total Available $           1,50,000 Closing Raw materials $               15,000 $           1,35,000 Manufacturing Overhead Direct Labour - Wages $           1,48,000 Indirect Labour Wages $               37,000 Factory Supplies $               10,000 Factory Depreciation $               65,000 Factory Repair and maintenance $               21,000 Indirect Material $               12,000 $           2,93,000 Opening Work-in-process, $              30,000 Total costs in process $           4,58,000 Ending Work-in-process $              41,000 Cost of goods manufactured $           4,17,000 Add: Finished Goods inventory , Jan - 01 $              51,000 Total Cost available for Sold $           4,68,000 Less: Closing Stock of Finished Goods $              36,000 Cost of Goods Sold $           4,32,000 Statement of Retained Earning Sales Revenue (15000 units X $ 40) $           6,00,000 Less: Cost of Goods Sold $           4,32,000 Gross Revenue $           1,68,000 Less: Selling and admnistrative Expenses Selling Expenses 62000 Non - Factory Administrative Exps 58000 $           1,20,000 Net Revenue $              48,000