Answer:
<em>1. Prepare a schedule of cost of goods manufactured</em>
<u>schedule of cost of goods manufactured</u>
Direct labor cost $83,000
Raw Materials $133,000
Manufacturing overhead $202,000
<em>Add</em> Beginning Work In Process $5,900
<em>Less </em>Ending Work In Process ($20,500)
cost of goods manufactured $403,400
<em>2. Prepare a schedule of cost of goods sold</em>
<u>schedule of cost of goods sold</u>
Begining Finished goods $74,000
<em>Add</em> cost of goods manufactured $403,400
<em>Less</em> Ending Finished goods ($25,100)
<em>Add</em> Under- Applied Overheads $22,000
cost of goods sold $473,300
<em>3. Prepare an income statement.</em>
Sales $658,000
<em>Less</em> cost of goods sold ($473,300)
Gross Profit $184,700
<em>Less </em>Operating Expenses
Selling expenses ($106,000)
Administrative expenses ($46,000)
Net Income $ 32,700
Explanation:
<em>1. Prepare a schedule of cost of goods manufactured</em>
<u>Raw Materials Consumed in Production</u>
Begining Raw Materials Inventory $8,800
<em>Add</em> Raw material purchases $135,000
<em>Less </em>Ending Raw Materials Inventory ($10,800)
Raw Materials Consumed in Production $133,000
<u>schedule of cost of goods manufactured</u>
Direct labor cost $83,000
Raw Materials $133,000
Manufacturing overhead $202,000
<em>Add</em> Beginning Work In Process $5,900
<em>Less </em>Ending Work In Process ($20,500)
cost of goods manufactured $403,400
<em>2. Prepare a schedule of cost of goods sold</em>
Actual manufacturing overhead costs ($224,000) > Applied Manufacturing overhead($202,000)
<u>Under- Applied Overheads</u>
Applied Manufacturing overhead $202,000
Actual manufacturing overhead costs $224,000
Under- Applied Overheads $22,000
<u>schedule of cost of goods sold</u>
Begining Finished goods $74,000
<em>Add</em> cost of goods manufactured $403,400
<em>Less</em> Ending Finished goods ($25,100)
<em>Add</em> Under- Applied Overheads $22,000
cost of goods sold $473,300
<em>3. Prepare an income statement.</em>
Sales $658,000
<em>Less</em> cost of goods sold ($473,300)
Gross Profit $184,700
<em>Less </em>Operating Expenses
Selling expenses ($106,000)
Administrative expenses ($46,000)
Net Income $ 32,700
