Cannect On February 1 2016 Sar BSICO3 PracticeL04 tpx BSJC

Cannect On February 1, 2016 Sar × , BSICO3. Practice-L04 tpx BSJC.03 Prectice-LO4 Instructions I help Review | Question t6 (f 16) Score This Question Save & Ex Submi Note: This question will not be outomatically graded. r instructor for review. 0.10 points It wil be sent to you The following Informotion applies to the Johnson Tools Compony for the yeor. actory Rent Direct Mamenals Inventory, Beginning Direct Matenals Invensory, Ending Direct Metenals Purchases Direct Labor-wages direct Labor-Wages Finished Gaods Inventory, Beginnig Inished Goods Inventory Ending ndlrect Materlals 5330,000 96,000 87.000 654,000 425,000 28,000 25,000 44 000 G neral and Administrothe Work-n-Process Invemory, Beginning Work-in-Process Invemory, Ending Marketing Expenses ales Revenue 01350 ,000 33,000 225,000 2,550.000 Required Prepare statement of cost of goods manufactured and an income statement for the year 1002 PM Type here to search

Solution

Statement of Cost of Goods Manufactured Direct Materials Direct Materials Inventory, Beginning 95000 Direct Materials Purchases 654000 Total Direct Materials Available 749000 Direct Materials Inventory, Ending 87000 Direct Materials Used 662000 Direct Labor-Wages 425000 Factory overhead Utilities 40000 Rent 330000 Indirect Materials 66000 Indirect Labor 29000 Total Factory overhead 465000 Total Manufacturing costs 1552000 Work-in-Process Inventory 27000 Total Manufacturing Costs to Account for 1579000 Work-in-Process Inventory 33000 Cost of Goods Manufactured 1546000 Income Statement Sales Revenue 2550000 Cost of Goods Sold Finished Goods Inventory, Beginning 25000 Cost of Goods Manufactured 1546000 Total Goods Available for Sale 1571000 Finished Goods Inventory, Ending 44000 Cost of Goods Sold 1527000 Gross Margin 1023000 Marketing Expenses 225000 General and Administrative 101350 326350 Net Income 696650