Homework SourseMesa Designs produces a variety of hardware products primari
Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job interview as a summer intern at Mesa, the cost accountant provides you with the following (fictitious) data for the year (in $000):
Required:
Prepare the income statement with a supporting cost of goods sold statement.
| Inventory information: | 1/1/00 | 12/31/00 | ||
| Direct materials | $ | 49 | $ | 56 |
| Work-in-process | 77 | 69 | ||
| Finished goods | 988 | 1,014 | ||
Solution
Solution :
| Cost of goods sold - Mesa Designs | ||
| Particulars | Amount (In\'000) | |
| Beginning Direct material inventory | $49.00 | |
| Direct material purchased | $5,160.00 | |
| Ending direct material inventory | -$56.00 | |
| Direct material consumed | $5,153.00 | |
| Direct labor | $6,600.00 | |
| Manufacturing overhead: | ||
| Depreciation (Factory) | $2,830.00 | |
| Depreciation (Machines) | $4,630.00 | |
| Indirect labor (Factory) | $1,680.00 | |
| Indirect materials (Factory) | $490.00 | |
| Property taxes (Factory) | $190.00 | |
| Utilities (Factory) | $540.00 | |
| Total manufacturing overhead | $10,360.00 | |
| Total manufacturing cost incurred | $10,360.00 | |
| Add: Beginning WIP | $77.00 | |
| Less: Ending WIP | -$69.00 | |
| Cost of goods manufactured | $10,368.00 | |
| Add: Beginning finished goods inventroy | $988.00 | |
| Less: Ending finished goods inventory | -$1,014.00 | |
| Cost of goods sold | $10,342.00 |
