Question

Information from the records of the Bridgeview Manufacturing Company for August 2017 follows:Sales $315,000 Selling and administrative expenses 127,500 Purchases of raw materials 45,000 Direct labor 30,000 Manufacturing overhead 55,500 Inventories August 1 August 31 Raw materials $ 8,000 $ 5,000 Work-in-process 14,000 11,000 Finished goods 15,000 19,000 Prepare a statement of cost of goods manufactured and an income statement for August 2017. Do not use negative signs with any of your answers below.

Answer 1

Instructions are listed below.

Step-by-step explanation:

Giving the following information:

Sales $315,000

Selling and administrative expenses 127,500

Purchases of raw materials 45,000

Direct labor 30,000

Manufacturing overhead 55,500

Inventories:

August 1:

Raw materials= $8,000

Work-in-process= $14,000

Finished goods= $15,000

August 31

Raw materials $ 5,000

Work-in-process $11,000

Finished goods $19,000

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 14,000 + (8,000 + 45,000 - 5,000) + 30,000 + 55,500 - 11,000= $136,500

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 15,000 + 136,500 - 19,000= $132,500

Income statement:

Sales= 315,000

COGS= 132,500

Gross profit= 182,500

Selling and administrative expenses= 127,500

Net operating profit= $55,000