Maurice Tutor
$15/per page/Negotiable
Several items are omitted from each of the following income statement and cost of goods manufactured statement data for the month of December 2008:
|
 |
Washington |
Lee |
|
 |
Company |
Company |
|
Materials inventory, December 1 |
$ 65,000 |
$ 85,000 |
|
Materials inventory, December 31 |
(a) |
95,000 |
|
Materials purchased |
165,000 |
190,000 |
|
Cost of direct materials used in production |
174,000 |
(a) |
|
Direct labor |
245,000 |
(b) |
|
Factory overhead |
76,000 |
95,000 |
|
Total manufacturing costs incurred during December |
(b) |
550,000 |
|
Total manufacturing costs |
620,000 |
755,000 |
|
Work in process inventory, December 1 |
125,000 |
205,000 |
|
Work in process inventory, December 31 |
105,000 |
(c) |
|
Cost of goods manufactured |
(c) |
545,000 |
|
Finished goods inventory, December 1 |
110,000 |
95,000 |
|
Finished goods inventory, December 31 |
115,000 |
(d) |
|
Sales |
950,000 |
850,000 |
|
Cost of goods sold |
(d) |
551,000 |
|
Gross profit |
(e) |
(e) |
|
Operating expenses |
125,000 |
(f) |
|
Net income |
(f) |
189,000 |
Instructions
1. Determine the amounts of the missing items, identifying them by letter.
2. Prepare a statement of cost of goods manufactured for Lee Company.
3. Prepare an income statement for Lee Company.