Question

The following information is available for Robstown Corporation for 20Y8: Inventories January 1 December 31 Materials $351,000 $435,800 Work in process 625,200 590,400 Finished goods 607,400 571,000 December 31 Advertising expense $ 296,600 Depreciation expense-office equipment 43,560 Depreciation expense-factory equipment 55,880 Direct labor 669,000 Heat, light, and power-factory 22,060 Indirect labor 76,000 Materials purchased 658,200 Office salaries expense 183,300 Property taxes-factory 18,300 Property taxes-office building 31,200 Rent expense-factory 32,500 Sales 3,011,000 Sales salaries expense 417,000 Supplies-factory 16,000 Miscellaneous costs-factory 9,200 Required: a. Prepare the 20Y8 statement of cost of goods manufactured. For those boxes in which you must enter subtracted or negative numbers use a minus sign\.\* b. Prepare the 20Y8 income statement. *Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Answer 1

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 ($435,800)

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 $229,940

Total manufacturing costs $1,472,340

incurred in 20Y8

Total manufacturing costs $2,097,540

Work in process inventory, December 31, 20Y8 ($590,400)

Cost of goods manufactured $1,507,140

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 $1,543,540

Gross Profits $1,467,460

Operating expenses:

Administrative expenses:

Depreciation expense-office equipment $43,560

Office salaries expense $183,300

Property taxes-office building $31,200 $258,060

Selling expenses:

Sales salaries expense $417,000

Advertising expense $296,600 $713,600

Total operating expenses $971,660

Net income $495,800