Answer:
Zoe Company
a) Statement of Cost of Goods Manufactured:
Direct materials cost $90,000
Direct labor 25,000
Factory overhead 37,000
Work in process, March 1 22,000
Work in process, March 31 (23,500)
Cost of goods manufactured $150,500
b) Income Statement for the month ended March 31:
Sales $257,000
Finished goods inventory, March 1 $21,000
Cost of goods manufactured 150,500
Finished goods inventory, March 31 (30,000)
Cost of goods sold $141,500
Gross profit $115,500
Sales and administrative expenses 79,000
Net Income $36,500
c) Inventory Section of the Balance Sheet as of March 31:
Current Assets:
Inventory:
Materials inventory, March 31 $8,000
Work in process, March 31 23,500
Finished goods inventory, March 31 30,000
Total inventory $61,500
Explanation:
a) Data and Calculations:
Purchases $92,000
Materials inventory, March 1 6,000
Materials inventory, March 31 8,000
Direct labor 25,000
Factory overhead 37,000
Work in process, March 1 22,000
Work in process, March 31 23,500
Finished goods inventory, March 1 21,000
Finished goods inventory, March 31 30,000
Sales 257,000
Sales and administrative expenses 79,000
b) Materials inventory, March 1 $6,000
Purchases 92,000
Materials inventory, March 31 8,000
Direct materials cost $90,000
