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The following information pertains to Yuji Corporation:

January 1, 20X1 December 31, 20X1
Raw materials inventory $34,000 $38,000
Work-in-process inventory 126,000 145,000
Finished goods inventory 76,000 68,000
Costs incurred during the year 20X1 were as follows:

Raw material purchased $116,000
Wages to factory workers 55,000
Salary to factory supervisors 25,000
Salary to selling and administrative staff 40,000
Depreciation on factory building and equipment 10,000
Depreciation on office building 12,000
Utilities for factory building 5,000
Utilities for office building 7,500

Required:
Sales revenue during 20X1 was $300,000. The income tax rate is 21%. Compute the following:

a. Cost of raw materials used.
b. Cost of goods manufactured/completed.
c. Cost of goods sold.
d. Gross margin.
e. Net income.

User Dharmang
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1 Answer

4 votes

Answer:

a. Cost of raw materials used.$ 112,000

b. Cost of goods manufactured/completed.$ 188,000

c. Cost of goods sold. $ 196,000

d. Gross margin. $ 104,000

e. Net income. $ 35155

Step-by-step explanation:

Yuji Corporation

Cost Of Goods Sold Statement.

Beginning Raw materials inventory $34,000

Add Raw material purchased $116,000

Less Ending Raw materials inventory $38,000

Direct Materials Used $ 112,000

Add

Direct Labor Wages to factory workers 55,000

FOH $ 40,000

Utilities for factory building 5,000

Salary to factory supervisors 25,000

Depreciation on factory building and equipment 10,00

Total Manufacturing Costs $ 207,000

Add Beginning Work-in-process inventory 126,000

Cost of goods available for manufacture $ 333,000

Less Ending Work-in-process inventory 145,000

Cost of goods manufactured/completed $ 188,000

Add Beginning Finished goods inventory 76,000

Cost of goods available for sale $ 264,000

Less Ending Finished goods inventory 68,000

Cost of goods sold $ 196,000

We add and subtract as per format to get the required amounts.

Yuji Corporation

Income Statement

Sales revenue $300,000

Less Cost of goods sold $ 196,000

Gross margin $ 104,000

Less Selling and Administrative Expenses

Salary to selling and administrative staff 40,000

Depreciation on office building 12,000

Utilities for office building 7,500

Profit Before Income Tax 44,500

Income Tax ( 21% of 44,500) $ 9345

Net Income $ 35155

User Mackenzie
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