Question

Yolo Windows, a manufacturer of windows for commercial buildings, reports the following account information for last year (all costs are in thousands of dollars):
Information on January 1 (Beginning):
Direct materials inventory $ 36
Work-in-process inventory 48
Finished goods inventory 656
Information for the year:
Administrative costs $ 1,440
Direct labor 4,240
Direct materials purchases 3,280
Factory and machine depreciation 4,640
Factory supervision 840
Factory utilities 360
Indirect factory labor 1,120
Indirect materials and supplies 280
Marketing costs 600
Property taxes on factory 112
Sales revenue 18,160
Information on December 31 (Ending):
Direct materials inventory $ 32
Work-in-process inventory 56
Finished goods inventory 588


Required:

Prepare an income statement with a supporting cost of goods sold statement. (Enter your answers in thousands of dollars (i.e., 234,000 should be entered as 234).)

Answer 1

Answer:

Income Statement

Sales Revenue                                 $ 18,160

Less Cost of Goods Sold                ($14,936)

Gross Profit                                        $3,224

Less Expenses :

Administrative costs       $ 1,440

Marketing costs               $ 600     ($2,040)

Net Income / (Loss)                           $ 1,184

Explanation:

Cost of Goods Sold Statement

Beginning  Finished goods inventory               $ 656

Add Cost of Goods Manufactured                $ 14,868

Less Ending Finished goods inventory           ($ 588)

Cost of Goods Sold                                         $14,936

Cost of Goods Manufactured

Direct Materials ($ 36 + $ 3,280 - $ 32)                           $3,284

Direct labor                                                                       $ 4,240

Factory and machine depreciation                                 $ 4,640

Factory supervision                                                            $ 840

Factory utilities                                                                   $ 360

Indirect factory labor                                                        $ 1,120

Indirect materials and supplies                                         $ 280

Property taxes on factory                                                    $ 112

Add Beginning Work-in-process inventory                        $ 48

Less Ending Work-in-process inventory                           ($ 56)

Cost of Goods Manufactured                                         $14,868