Zoe Corporation has the following information for the month

Zoe Corporation has the following information for the month of March Purchases Materials inventory, March 1 Materials inventory, March 31 Direct labor Factory overhead Work in process, March 1 Work in process, March 31 Finished goods inventory, March 1 Finished goods inventory, March 31 Sales $92,000 6,000 8,000 25,000 37,000 22,000 23,500 21,000 30,000 257,000 79,000 Sales and administrative expenses Required: Prepare (a) a statement of cost of goods manufactured (o) an income statement for the month ended March 31, and (c) the inventory section of the balance sheet Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries complete the statement heading lessor ?¡s-\"?? automaticaly appear is requred You wd not need to enter cons () on the financial statements All work saved. up

Solution

Schedule for manufacturing cost beginning raw material 6000 Add Purchase of raw material 92000 Total 98000 Less Ending Raw material 8000 Raw material used in production 90000 Direct labor 25000 Factory overheads 37000 Total manufacturing cost 152000 Add Beginning work in progress 22000 174000 less Ending work in progress 23500 Cost of goods manufactured 150500 Add Beginning finished goods inventory 21000 Cost of goods available for sale 171500 Less Ending finished goods inventory 30000 Cost of goods sold 141500 Schedule for net income Sales revenue 257000 Less Cost of goods sold 141500 Gross profit 115500 Less Selling and administrative expense 79000 Net income 36500 Partial balance sheet Material inventory march 31 8000 Work in progress inventory march 31 23500 Finished goods inventory march 31 30000