P1948 m da a wer taken from the records of Goodman Manufactu

P19-48 m da a wer taken from the records of Goodman Manufacturing Company for the year ended December 31, 2012. Raw Materials Factory Insurance $ 7,400 Inventory 1/1/12 47,000 Factory Machinery Inventory 12/31/12 44,200 Factory Utilities Inventory 1/1/12 85,000 Sales Inventory 12/31/12 67,800 Plant Manager\'s Salary Inventory 1/1/12 Inventory 12/31/12 8,000 Cash Raw Materials 7,700 12,900 8,600 465,000 2,500 40,000 6,100 800 62,500 28,000 Depreciation Finished Goods Office Utilities Expense Finished Goods Sales Discounts Work in Process Factory Property Taxes 9,500 Factory Repairs Work in Process Raw Materials Purchases Direct Labor Indirect Labor Accounts Receivable 145,100 18,100 27,000 Instructions (a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.) (b) Prepare an income statement through gross profit. (c) Prepare the current assets section of the balance sheet at December 31.

Solution

PART-1)

Cost of Goods Manufactured Schedule

WIP 01/01/12

9,500

Direct material

Raw material inventory 01/01/12

47,000

Raw material purchases

62,500

Total Raw material available for use

109,500

Lless: Raw material Inventory on 31/12/12

44,200

Direct material used

65,300

Direct labor

14,100

Manufacturing OH

Plant manager\'s salary Indirect labor

40,000

Indirect labor

18,100

Factory utilities

12,900

Factory machine depreciation

7,700

Factory Insurance

7,400

Factory Property taxes

6,100

Factory Repairs

800

Total manufacturing OH

93,000

Total manufacturing cost

303,400

Total cost WIP

312,900

Less: WIP 31/12/12

8,000

Cost of goods manufactured

3,04,900

PART-2)

Income statement (Partial)

Sales revenue

Sales

465,000

Minus: Discount

2,500

Net sales

462,500

COGS

Finished goods inventory 01/01/12

85000

Cost of goods manufactured

304,900

Cost of goods for sale

389,900

Finished goods inventory 31/12/12

67,800

Cost of goods sold

322,100

Gross profit

140,400

PART-3)

Balance sheet (partial)

Cash

28,000

Accounts receivable

27,000

Inventories

Finished goods inventory 31/12/12

67,800

WIP 31/12/12

8,000

Raw material inventory 31/12/12

44,200

Total current assets

175,000

Cost of Goods Manufactured Schedule
WIP 01/01/12			9,500
Direct material
Raw material inventory 01/01/12	47,000
Raw material purchases	62,500
Total Raw material available for use	109,500
Lless: Raw material Inventory on 31/12/12	44,200
Direct material used		65,300
Direct labor		14,100
Manufacturing OH
Plant manager\'s salary Indirect labor	40,000
Indirect labor	18,100
Factory utilities	12,900
Factory machine depreciation	7,700
Factory Insurance	7,400
Factory Property taxes	6,100
Factory Repairs	800
Total manufacturing OH		93,000
Total manufacturing cost			303,400
Total cost WIP			312,900
Less: WIP 31/12/12			8,000
Cost of goods manufactured			3,04,900