Manufacturing income statement, statement of cost of goods
manufactured
Several items are omitted from each of the following income statement and cost of goods
manufactured statement data for the month of December 2012:
Tom Jerry company
Company
Materials inventory, December 1 $ 1 87,200 $ 1 1 8,000
Materials inventory, December 31 (a) 1 20,000
Materials purchased 475,200 228,000
Cost of direct materials used in production 501 ,600 (a)
Direct labor 705,600 (b)
Factory overhead 21 8,400 1 20,000
Total manufacturing costs incurred during December (b) 690,000
Total manufacturing costs 1 ,785,600 985,000
Work in process inventory, December 1 360,000 295,000
Work in process inventory, December 31 302,400 (c)
Cost of goods manufactured (c) 683,000
Finished goods inventory, December 1 31 6,800 1 36,000
Finished goods inventory, December 31 331 ,200 (d)
Sales 2,760,000 1 ,1 1 7,000
Cost of goods sold (d) 701 ,000
Gross prof t (e) (e)
Operating expenses 360,000 (f)
Net income (f) 256,000
Instructions
1. Determine the amounts of the missing items, identifying them by letter.
2. Prepare a statement of cost of goods manufactured for Jerry Company.
3. Prepare an income statement for Jerry Company.