Consider the following account balances in thousands for the

Consider the following account balances in thousands for the Yankee Company for the year ended December 31, 2017:

Direct Materials Inventory, Beginning                  $          24,000

Direct Material Invenotry, Ending                                    26,000

Work in Process, Beginning                                           32,000

Work in Process, Ending                                               14,000

Finished Goods Inventory, Beginning                              25,000

Finished Goods Inventory, Ending                                  18,000

Direct Materials, Purchased                                           99,000

Direct Labor                                                                  30,000

Indirect Labor                                                                12,000

Plant insurance                                                              9,000

Other insurance                                                             8,000

Depreciation – plant                                                      11,000

Depreciation – other                                                      10,000

Repairs & Maintenance – plant                                       5,000

Marketing & Customer support                                       95,000

Plant rent                                                                      15,000

General & Admin                                                           36,000

            Required:

            Prepare a statement of cost of goods manufactured and an income statement for the year ended December 31, 2017, please note sales were $310,000,000

Solution

Direct Materials Inventory, Beginning 24000 Add: Direct Materials, Purchased 99000 Less: Direct Material Invenotry, Ending 26000 Raw material cosnumption 97000 Add: Direct Labor 30000 Add: Indirect labor 12000 Add: Plant insurance 9000 Add: Depreciation plant 11000 Add: Repair and Maintenance plant 5000 Add: Plant rent 15000 Add: Other insurance 8000 Add: Other depreciation 10000 Add: General & Admin 36000 Add: Work in process beginning 32000 Less: Work in process ending 14000 Cost of Goods Manufactured 251000 Cost of goods manufactured 251000 Add: Finished goods Inventory beginning 25000 Less: Finished goods inventory ending 18000 Cost of goods sold 258000 Add: Marketing costs 95000 Cost of Sales 353000 Add: Net Profit -43000 Sales 310000