Answer:
Robstown Corporation
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 20Y8
Work in process inventory, January 1, 20Y8 $625,200
Direct materials:
Materials inventory, January 1, 20Y8 $351,000
Purchases $658,200
Cost of materials available for use $1,009,200
Materials inventory, Dec 31, 20Y8 <u>($435,800)</u>
Cost of direct materials used in $573,400 $573,400
production
Direct labor $669,000
Factory overhead
Depreciation expense-factory $55,880
equipment
Heat, light, and power-factory $22,060
Indirect labor $76,000
Miscellaneous costs-factory $9,200
Property taxes-factory $18,300
Rent expense-factory $32,500
Supplies-factory $16,000
Total factory overhead <u>$229,940 </u>
Total manufacturing costs <u> $1,472,340</u>
incurred in 20Y8
Total manufacturing costs $2,097,540
Work in process inventory, December 31, 20Y8 <u>($590,400)</u>
Cost of goods manufactured <u>$1,507,140</u>
Robstown Corporation
Income Statement
For the Year Ended December 31, 20Y8
Sales $3,011,000
Cost of goods sold:
Finished goods inventory, Jan 1, 20Y8 $607,400
Cost of goods manufactured $1,507,140
Cost of finished goods available for sale $2,114,540
Finished goods inventory, Dec. 31, 20Y8 ($571,000)
Cost of Goods Sold <u>$1,543,540</u>
Gross Profits $1,467,460
Operating expenses:
<u><em>Administrative expenses:</em></u>
Depreciation expense-office equipment $43,560
Office salaries expense $183,300
Property taxes-office building <u>$31,200</u> $258,060
<u><em>Selling expenses:</em></u>
Sales salaries expense $417,000
Advertising expense <u>$296,600</u> <u>$713,600</u>
Total operating expenses <u>$971,660</u>
Net income <u>$495,800 </u>
