Answer:
1. Cost of goods manufactured = $1,672,160
2. Net income = $336,540
Step-by-step explanation:
Requirement 1
Robstown Corporation
statement of cost of goods manufactured
For the year ended 20Y8
Direct Materials
Beginning materials inventory $352,000
Add: Materials purchased $659,200
Materials available for use = 1,011,200
Less: Ending materials inventory = ($436,200)
Direct materials used = 575,000
Direct labor = 669,400
Prime cost = 1,244,400
Add: Factory overhead
Depreciation expense-factory equipment $56,340
Heat, light, and power-factory 22,220
Indirect labor 77,000
Property taxes-factory 18,500
Rent expense-factory 33,000
Supplies-factory 15,200
Miscellaneous costs-factory 9,700
Total factory overhead = 231,960
Manufacturing cost = $1,476,360
Add: Work in process, January 1 = $632,000
Less: Work in process, December 31 = ($436,200)
Cost of goods manufactured = $1,672,160
Requirement 2
Robstown Corporation
Income statement
For the year ended 20Y8
Sales 3,015,000
Less: Cost of goods sold (Note - 1) ($1,704,360)
Gross profit = $1,310,640
Less: Administrative and selling expense
Advertising expense $295,400
Depreciation expense-office equipment 43,800
Office salaries expense 185,300
Property taxes-office building 31,600
Sales salaries expense 418,000
Total cost $974,100
Net income = $336,540
(Note - 1) Cost of goods manufactured + Beginning finished goods - Ending finished goods = $1,672,160 + 606,200 - 574,000 = $1,704,360.