Answer:
Instructions are listed below
Explanation:
Giving the following information:
Sales $ 660,000
Direct labor cost $ 86,000
Raw material purchases $ 135,000
Selling expenses $ 109,000
Administrative expenses $ 46,000
Manufacturing overhead applied to work in process $ 205,000 Actual manufacturing overhead costs $ 225,000
Inventories Beginning Ending Raw materials $ 8,200 $ 10,800
Work in process $ 5,000 $ 20,600
Finished goods $ 74,000 $ 25,900
1) cost of goods manufactured:
Beginning Work in process $ 5,000
Inventories Beginning Raw materials $ 8,200
Raw material purchases $ 135,000
Ending inventories Raw materials $ 10,800 (-)
Direct labor cost $ 86,000
Manufacturing overhead applied to work in process $ 205,000
Ending Work in process $ 20,600 (-)
Total= $407,800
2) Cost of goods sold:
Beginning Finished goods $ 74,000
cost of goods manufactured $407,800
Ending finished goods $ 25,900 (-)
Underapplied overhead= 20,000 (+)
Total COGS= $475,900
3) Income statement:
Sales= 660,000
COGS= 475,900
Gross income= $184,100
Selling expenses $ 109,000
Administrative expenses $ 46,000
Net operating income= $29,100
