Chrome File Edit View History Bookmarks People Window Help i

Chrome File Edit View History Bookmarks People Window Help inbox (172)-nacolombo@w My Grades-BMG 140: Introc D BMG 1 1 1 Winter 201 8 OL sc: Learning units-ACC 1 22: Pr x × × c.secure https://mybusinesscourse.com/platform/mod/quiz/attempt.php?attempta 1 579 755&page-1; BusinessCourse Menu 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) Kelly Metal Products Corporation Schedule of Cost of Goods Manufactured and Sold For the Year Ended December 31, 2016 Direct material Beginning materials inventory Cost of materials purchased Cost of material available Less: Ending materials Inventory Total materials used Less: Indirect material used Direct materials used 25,000 125,000 150,000 15,000 135,000 12,000 $123,000 148,000 Direct labor Manufacturing overhead Indirect material indirect labor Factory supplies used Factory depreciation Factory repairs and maintenance Total manufacturing overhead 12,000 37,000 10,000 65,000 21,000 145,000 416,000 30,000 Total manufacturing costs for the year Add: Beginning work in process inventory

Solution

Lederman Manufacturing Corporation Income Statement For The Year Ended December 31, 2016 Sales                                                                 (1) 600000 Cost of goods sold 420000 Gross Profit on Sales 180000 Operating Expenses:    Selling expenses 62000    Administrative expenses 58000 Total Operating Expenses 120000 Net income 60000 Earnings per share of common stock   (3) $12.00 (1) Sales = 15,000 units @$40 per unit = 15,000 x 40 = $600,000 (2) Cost of goods sold, selling expenses and        administrative expenses are from the statement given. (3) Earnings per share = Net income / Number of shares outstanding. ($60,000 / 5,000) = $12.00