Several items are omitted from each of the following income statement and cost of goods manufactured statement data for the month of December 2008:
|
|
Vinston |
Turkun |
|
|
Company |
Company |
|
Materials inventory, December 1 |
$ 25,000 |
$ 32,000 |
|
Materials inventory, December 31 |
(a) |
15,000 |
|
Materials purchased |
105,000 |
(a) |
|
Cost of direct materials used in production |
120,000 |
(b) |
|
Direct labor |
145,000 |
95,000 |
|
Factory overhead |
56,000 |
42,000 |
|
Total manufacturing costs incurred in December |
(b) |
249,000 |
|
Total manufacturing costs |
336,000 |
283,000 |
|
Work in process inventory, December 1 |
45,000 |
34,000 |
|
Work in process inventory, December 31 |
65,000 |
(c) |
|
Cost of goods manufactured |
(c) |
252,000 |
|
Finished goods inventory, December 1 |
84,000 |
44,000 |
|
Finished goods inventory, December 31 |
74,000 |
(d) |
|
Sales |
425,000 |
320,000 |
|
Cost of goods sold |
(d) |
254,000 |
|
Gross profit |
(e) |
(e) |
|
Operating expenses |
44,000 |
(f) |
|
Net income |
(f) |
27,000 |
Instructions
1. Determine the amounts of the missing items, identifying them by letter.
2. Prepare a statement of cost of goods manufactured for Vinston Company.
3. Prepare an income statement for Vinston Company.