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Schedules of Cost of Goods Manufactured and Cost of Goods Sold Income Statement Valenko Company provided the following account balances for the year ended December 31 all raw materials are used

Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement

Valenko Company provided the following account balances for the year ended December 31   (all

raw materials are used in production as direct materials):

 

Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$215,000

Purchases of raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$260,000

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

?

Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$160,000

Manufacturing overhead applied to work in process . . . . . . . . .

$340,000

Total actual manufacturing overhead costs . . . . . . . . . . . . . . .

$350,000

 

Inventory balances at the beginning and end of the year were as follows:

 

 

Beginning of Year

End of Year

Raw materials . . . . . . . . . . . . . . . . . .

$50,000

$40,000

Work in process . . . . . . . . . . . . . . . .

Finished goods . . . . . . . . . . . . . . . . .

?

$30,000

$33,000

?

 

The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $720,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $35,000. The company’s overapplied or underapplied overhead is closed entirely to cost of goods sold.

Required:

Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the sched- ule of cost of goods manufactured.)

Jun 28 2020 View more View Less

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