Homework SourseStorSmart Company makes plastic organizing bins The company
StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March:
Additional information for the month of March follows:
StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March:
Required:
1. Based on the above information, prepare a cost of goods manufactured report.
2. Based on the above information, prepare an income statement for the month of March.
StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March:
| Beginning Inventory | Ending Inventory | |||||
| Raw materials | $ | 29,800 | $ | 26,800 | ||
| Work in process | 21,800 | 45,600 | ||||
| Finished goods | 79,100 | 69,300 | ||||
Solution
1. Cost of goods manufactured report :
2. Based on the above information, prepare an income statement for the month of March.
| Beginning work in process | 21800 | ||
| Beginning raw material inventory | 29800 | ||
| Add: Raw material purchase | 41100 | ||
| Less: Ending raw material inventory | (26800) | ||
| Less: Indirect material used | (1600) | ||
| Direct material used | 42500 | ||
| Direct labour | 63800 | ||
| manufacturing overhead applied | 36800 | ||
| 143100 | |||
| 164900 | |||
| Less: Ending work in process | (45600) | ||
| Cost of goods manufactured | 119300 |
