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21 February, 19:56

Amazon has the following information for the month of March.

Purchases $417,500

Materials inventory, March 1 83,300

Materials inventory, March 31 91,500

Direct labor 117,000

Factory overhead 102,000

Work in process, March 1 55,600

Work in process, March 31 77,900

Finished goods inventory, March 1 65,400

Finished goods inventory, March 31 82,200

Sales 1,167,000

Sales and administrative expenses 371,000

Prepare a (a) schedule of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c) prepare only the inventory section of the balance sheet.

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  1. 21 February, 20:21
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    (a) schedule of cost of goods manufactured

    Raw Materials 409,300

    Direct labor 117,000

    Factory overhead 102,000

    Add Opening Work in process 55,600

    Less Closing Work in process (77,900)

    Cost of goods manufactured 606,000

    (b) an income statement for the month ended March 31

    Sales 1,167,000

    Less Cost of Sales

    Opening Finished goods inventory 65,400

    Add Cost of Goods Manufactured 606,000

    Less Closing Finished goods inventory (82,200) (589,200)

    Gross Profit 577,800

    Sales and administrative expenses (371,000)

    Net Income 206,800

    (c) the inventory section of the balance sheet

    Materials inventory 91,500

    Work in process 77,900

    Finished goods inventory 82,200

    Total 251,600

    Explanation:

    (a) schedule of cost of goods manufactured

    Materials Used in Production = Opening Materials inventory + Purchases - Closing Materials inventory

    = 83,300 + 417,500 - 91,500

    = 409,300

    schedule of cost of goods manufactured

    Raw Materials 409,300

    Direct labor 117,000

    Factory overhead 102,000

    Add Opening Work in process 55,600

    Less Closing Work in process (77,900)

    Cost of goods manufactured 606,000

    (b) an income statement for the month ended March 31

    Sales 1,167,000

    Less Cost of Sales

    Opening Finished goods inventory 65,400

    Add Cost of Goods Manufactured 606,000

    Less Closing Finished goods inventory (82,200) (589,200)

    Gross Profit 577,800

    Sales and administrative expenses (371,000)

    Net Income 206,800

    (c) the inventory section of the balance sheet

    Materials inventory 91,500

    Work in process 77,900

    Finished goods inventory 82,200

    Total 251,600
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