Question

Zoe Corporation has the following information for the month of March:Purchases $ 92,000Materials inventory, March 1 6,000Materials inventory, March 31 8,000Direct labor 25,000Factory overhead 37,000Work in process, March 1 22,000Work in process, March 31 23,500Finished goods inventory, March 1 21,000Finished goods inventory, March 31 30,000Sales 257,000Sales and administrative expenses 79,000​Prepare (a) a schedule of cost of goods manufactured and (b) an income statement for the month.

Answer 1

Instructions are listed below

Step-by-step explanation:

Giving the following information:

Materials inventory, March 1 6,000

Materials inventory, March 31 8,000

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

Direct labor 25,000

Factory overhead 37,000

Purchases $ 92,000

Sales 257,000

Sales and administrative expenses 79,000

A) Cost of goods manufactured:

beginning WIP= 22000

Direct materials= (6000 + 92000 - 8000)= 90,000

Direct labor= 25000

Allocated manufacturing overhead= 37000

Ending WIP= 23500 (-)

Total= 150,500

B) First, we need to calculate the cost of goods sold:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory= 21000 + 150500 - 30000= $141,500

Income statement:

Sales= 257,000

COGS= 141500

Gross profit= 115,500

Sales and administrative expenses 79,000

Net operating profit= $36,500