Information from the records of the Bridgeview Manufacturing Company for August 2017 follows:Sales $315,000 Selling and administrative expenses 127,500 Purchases of raw materials 45,000 Direct labor 30,000 Manufacturing overhead 55,500 Inventories August 1 August 31 Raw materials $ 8,000 $ 5,000 Work-in-process 14,000 11,000 Finished goods 15,000 19,000 Prepare a statement of cost of goods manufactured and an income statement for August 2017. Do not use negative signs with any of your answers below.

Instructions are listed below.

Explanation:

Giving the following information:

Sales $315,000

Selling and administrative expenses 127,500

Purchases of raw materials 45,000

Direct labor 30,000

Manufacturing overhead 55,500

Inventories:

August 1:

Raw materials = $8,000

Work-in-process = $14,000

Finished goods = $15,000

August 31

Raw materials $ 5,000

Work-in-process $11,000

Finished goods $19,000

cost of goods manufactured = beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured = 14,000 + (8,000 + 45,000 - 5,000) + 30,000 + 55,500 - 11,000 = $136,500

COGS = beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS = 15,000 + 136,500 - 19,000 = $132,500

Income statement:

Sales = 315,000

COGS = 132,500

Gross profit = 182,500

Selling and administrative expenses = 127,500

Net operating profit = $55,000