Manufacturing income statement, statement of cost of goods
manufactured

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December 2016:

 

Materials inventory, December 1                                                                            $  280,280                       $  177,000

Materials inventory, December 31                                                                                  (a)                                         180,000

Materials purchased                                                                                                                 712,800                                 342,000

Cost of direct materials used in production                                                           752,400                                    (a)

Direct labor                                                                                                                                1,058,400                                   (b)

Factory overhead                                                                                                                       327,600                                 180,000

Total manufacturing costs incurred during December                                     (b)                                                                                                                                                            1,035,000 Total manufacturing costs                                                                                                           2,678,400                                                                                                                                                            1,477,500

Work in process inventory, December 1                                                                  540,000                                 442,500

Work in process inventory, December 31                                                               453,600                                    (c)

Cost  of  goods manufactured                                                                                                (c)                                     1,024,500

Finished goods inventory, December  1                                                                   475,200                                 204,000

Finished goods inventory, December  31                                                                496,800                                   (d)

Sales                                                                                                                                                 4,140,000                             1,675,500

Cost of goods  sold                                                                                                                        (d)                                    1,051,500

Gross profit                                                                                                                                        (e)                                            (e)

Operating  expenses                                                                                                                 540,000                                    (f )

Net income                                                                                                                                        (f )                                         384,000

Instructions

1.    Determine the amounts of the missing items, identifying them by letter.

2.    Prepare Volt Company’s statement of cost of goods manufactured for December.

3.    Prepare Volt Company’s income statement for December.