6 chapter 19 Learning Objective 5 E1923 s reparing a schedul

6 chapter 19 Learning Objective 5 E19-23 s reparing a schedule of cost of goods manufactured and atcome statement Operating Income $69 mpany has the following information for the year ended Dec 31, the information to prepare a schedule of cost of goods manuured Jorda n Co and an income shown in millions. e statement. Assume no indirect materials are used and all assounts are Beginning $5 12 Ending $ 16 15 Inventory Balances: Work-in-Process Finished Goods Other information: Sales Revenue Selling and Administrative Expenses $253 85 62 20 31 Direct Labor Manufacturing Overhead; actual and allocated Direct Materials Used ctives 2, 3, 4, 5 E19-24 Preparing job order costing journal entries lou

Solution

A

Cost of goods manufactured

Particulars

Amount

Direct material used

$31

Direct labour cost

$62

Manufacturing Overheads applied

$20

Total

$113

Add: Beginning work in progress

$5

Less: Ending work in progress

($16)

Cost of goods manufactured

$102

B

Income statement

Amount

Sales revenue

253

Less: Expenses:

Direct materials

-31

Direct Labour

-62

Manufacturing overheads

-20

Selling and admin expenses

-85

Net Profit

55

A	Cost of goods manufactured
	Particulars	Amount
	Direct material used	$31
	Direct labour cost	$62
	Manufacturing Overheads applied	$20
	Total	$113
	Add: Beginning work in progress	$5
	Less: Ending work in progress	($16)
	Cost of goods manufactured	$102
B	Income statement	Amount
	Sales revenue	253
	Less: Expenses:
	Direct materials	-31
	Direct Labour	-62
	Manufacturing overheads	-20
	Selling and admin expenses	-85
	Net Profit	55