Answer:
1. Cost of goods manufactured = $150,500
2. Net income = $36,500
3. Total Inventory = $61,500
Explanation:
Requirement 1
Zoe Corporation
Schedule of cost of goods manufactured
For the month ended March 31
Direct Materials:
Beginning Materials inventory $6,000
Add: Raw materials purchases <u> 92,000</u>
Raw materials available for use $98,000
<u>Less: Ending Raw Materials 8,000</u>
Direct materials used $90,000
<u>Direct Labor 25,000</u>
Prime Cost $115,000
<u>Factory overhead 37,000</u>
Total manufacturing cost $152,000
Add: Work in process, March 1 22,000
<u>Less: Work in process, March 31 (23,500)</u>
Cost of goods manufactured $150,500
Requirement 2
Zoe Corporation
Income Statement for manufacturing company
For the month ended March 31
Sales revenue $257,000
<em>Less: Cost of goods sold</em>
Beginning finished goods inventory $ 21,000
Add: Cost of goods manufactured (Req.1) <u> 150,500</u>
<em>Finished goods available for sale 171,500</em>
Less: Ending finished goods inventory <u> (30,000)</u>
<u>Cost of goods sold 141,500</u>
Gross Profit $115,500
<u>Less: Sales and administrative expenses 79,000</u>
Net operating Income $36,500
Requirement 3
Zoe Corporation
Balance Sheet
As at March 31
Inventory:
Materials $8,000
Work-in-process 23,500
<u>Finished goods 30,000</u>
Total Inventory $61,500
Inventory consists of all the ending materials, ending work-in-process, and ending finished goods. All the ending items need to be shown in the balance sheet because those inventories will remain at hand at the end of the period.
