Answer:
It is a simple Cost of Goods Manufactured statement which needs only addition or subtraction at each stage. The formulae used at each working is given . Also the working is given for each company underneath
Step-by-step explanation:
On Company Off Company
Sales 1,015,440 881,800
Materials inventory, December 1 $68,890 $88,180
Materials purchased 174,980 (a) 284810
Materials inventory, December 31 59240 (a) 99,640
Cost of direct materials used in production 184,630 (b) 273350
Opening Inventory + Purchases - Ending Inventory = Cost of Purchases
On Company ( $ 68,890 + 174,980 -184630= 59240 a)
Off Company (273350+99640-88180= 284810 a)
Direct labor 259,720 198,410
Factory overhead 80,600 98,760
Total manufacturing costs incurred in December 399560 (b) 570,520
Total Manufacturing Costs= Costs Of Purchases + Direct Labor + FOH
On Company (59240+259720+80600= 399560 b )
Off Company (570520-98760-198410= 273350 b)
Total manufacturing costs 657,220 783,030
Work in process inventory, December 1 132,270 212,510
Work in process inventory, December 31 111,600 (c) 430310
Cost of goods manufactured 677890 (c) 565,230
Cost of Goods Manufactured=Total Manufacturing Costs + Beginning WIP - Ending WIP
On Company (657220+132,270 -111600=c 677890)
Off Company (783,030+212510-565230=c 430310)
Finished goods inventory, December 1 116,420 98,760
Finished goods inventory, December 31 121,940 (d) 93470
Cost of goods sold 672 370(d) 570,520
Cost Of Goods Sold= Cost of Goods Manufactured + Beg. Finished Goods- Ending Finished Goods
On Company ( 677890 +116420-121940= d 672 370 )
Off Company (565,230 +98,760 -570,520 = d 93470)
Gross profit 343070 (e) 311280 (e)
Sales - COGS = Gross Profit
On Company ( 1,015,440- 672370=343070 e)
Off Company ( 881,800-570,520= 311280 e )
Operating expenses 132,270 (f) 1155220
Net income= Gross Profit- Operating expenses
On Company ( 343070 -132,270= 210800 f )
Off Company (311280- f =195,760)
Off Company ( f=311280-195,760= 1155220 f )
Net income 210800(f) 195,760