Problem 243 Schedules of Cost of Gooc Manufactured and Sold

Problem 2-43 Schedules of Cost of Gooc Manufactured and Sold The following data refer to San Fernando Fashions Company for the year 20x2: $950,000 Income Statement Sales revenue Work-in-process inventory, December 3 .. Work-in-process inventory, January elling and administrative expenses... ncome tax expense Purcnases of raw material. Raw material inventory, December 31 law- material inventory, January 1. Direct labor. 30000 (Lo 2-1, 2-3,2-5, 2-6) 40,000 150,000 2. Cost of goods sold: 90,000 $580,000 180,000 25,000 40,000 200.000 continued)

Solution

Req a: Cost of Goods manufactured Schedule: Beginning Inventory of WIP 40000 Add: Current cost of Manufacturing Beginning Inventory of RM 40000 Add: Purchasse 180000 Total c ost of material available 220000 Less: Ending inventory of Material 25000 Material consumed 195000 Direct labour 200000 Manufacturing oVerheads Plant utilities 40000 Depreciation Plant and equipment 60000 Indirect Material 10000 Indirect Labor 15000 Other manufacturing OH 80000 Manufacturing oVerheads 205000 Total Current cost of manufacturing 600000 Total cost of Goods manufacturing 640000 Less: Ending inventory of WIP 30000 Cost of Goods manufactured   610000 Cost of Goods sold schedule Beginning Inventory of FG 20000 Add: Cost of Goods manufactured 610000 Total cost of goods available for sale 630000 Less: Ending Inventory of FG 50000 Cost f goods sold 580000 Income Statement: Sales revenue 950000 Less: Cost of Goods sold 580000 Gross Margin 370000 Less: Selling and admin expense 150000 Operating income 220000 Less: Taxx 90000 Net income after tax 130000 Req 4. Cost of Goods manufactured Schedule: Beginning Inventory of WIP 40000 Add: Current cost of Manufacturing Beginning Inventory of RM 40000 Add: Purchasse 190000 Total c ost of material available 230000 Less: Ending inventory of Material 25000 Material consumed 205000 Direct labour 200000 Manufacturing oVerheads Plant utilities 40000 Depreciation Plant and equipment 60000 Indirect Material 10000 Indirect Labor 20000 Other manufacturing OH 80000 Manufacturing oVerheads 210000 Total Current cost of manufacturing 615000 Total cost of Goods manufacturing 655000 Less: Ending inventory of WIP 30000 Cost of Goods manufactured   625000 Cost of Goods sold schedule Beginning Inventory of FG 20000 Add: Cost of Goods manufactured 625000 Total cost of goods available for sale 645000 Less: Ending Inventory of FG 50000 Cost f goods sold 595000 Income Statement: Sales revenue 950000 Less: Cost of Goods sold 595000 Gross Margin 355000 Less: Selling and admin expense 150000 Operating income 205000 Less: Taxx 90000 Net income after tax 115000