Please complete the Income statement Calculation of Direct Materials Used (Analyze Raw Materials Account) Beginning Raw Materials Inventory2,373.75 Plus: Purchases of Direct Materials, Freight-in, Duties26111.25 Materials Available for Use28485 Less: Ending Raw Materials Inventory18,041.32<<<To balance sheetDirect Materials Used10443.68 Calculation of Cost of Goods Manufactured (Analyze WIP Inventory) Beginning WIP Inventory0 Plus Manufacturing Costs Incurred:355,428.68 Direct Materials Used10443.68 Direct Labor135,000.00 Manufacturing Overhead191,943.68 Total Manufacturing Costs to Account For337,387.36 Less: Ending WIP Inventory18,041.32<<<To balance sheetCost of Goods Manufactured319346.04 Calculation of Cost of Goods Sold (Analyze Finished Goods Inventory) Beginning Finished Goods Inventory0 Plus: Cost of Goods Manufactured319346.04 Cost of Goods Available for Sale319346.04 Less: Ending Finished Goods Inventory0<<<To balance sheetCost of Goods Sold319346.04<<<To income statementHarmon's Rolls Income Statement As of December 31, 2021 Sales Revenues $ 382,616.00 Less: Cost of Goods Sold 319,346.04<<<From Calculations Tab Gross Profit $ 63,269.96 Operating Expenses Payment of utilities first year 15,000 Employee salaries first year 135,000 Insurance coverage (General Liability, workers’ compensation, property liability) 10,000 Equipment cost 30,000 Cost of inventory (raw materials and packaging materials) 28,485 Cost of renting facility for tissue production for at least a year 40,000 Cost of tissue distribution truck 50,000 Cost of administrative start-up expenses (computers, printers, stationeries, phones7,000 All other Start up expenses 11,902 Miscellaneous 10,000 Total Operating Expenses 337,387 Net income $45,229 b. Harmon's RollsBalance SheetAs of December 31, 2021 ASSETS LIABILITIES Total Liabilities - STOCKHOLDERS' EQUITY Common stock - Owner Investment Retained earnings - Total Stockholders' Equity - Total Assets $0 Total Liabilities & Stockholders' Equity - Remember Assets = Liabilities + Owners Equity - your balance sheet must be in balance Make sure raw materials, work in progress, and finished goods inventory show on your balance sheetThese should be the same figures that you use for ending balances on your Calculations tab

Income statement The purpose of preparing the income statement to know the net income which are…

Answered: Please complete the Income statement…

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 5M

Related questions

Question

Please complete the Income statement

Calculation of Direct Materials Used
(Analyze Raw Materials Account)

Beginning Raw Materials Inventory	2,373.75
Plus: Purchases of Direct Materials, Freight-in, Duties	26111.25
Materials Available for Use	28485
Less: Ending Raw Materials Inventory	18,041.32	<<<To balance sheet
Direct Materials Used	10443.68

Calculation of Cost of Goods Manufactured
(Analyze WIP Inventory)

Beginning WIP Inventory	0
Plus Manufacturing Costs Incurred:	355,428.68
Direct Materials Used	10443.68
Direct Labor	135,000.00
Manufacturing Overhead	191,943.68
Total Manufacturing Costs to Account For	337,387.36
Less: Ending WIP Inventory	18,041.32	<<<To balance sheet
Cost of Goods Manufactured	319346.04

Calculation of Cost of Goods Sold
(Analyze Finished Goods Inventory)

Beginning Finished Goods Inventory	0
Plus: Cost of Goods Manufactured	319346.04
Cost of Goods Available for Sale	319346.04
Less: Ending Finished Goods Inventory	0	<<<To balance sheet
Cost of Goods Sold	319346.04	<<<To income statement

Harmon's Rolls
Income Statement
As of December 31, 2021

Sales Revenues		$ 382,616.00
Less: Cost of Goods Sold		319,346.04	<<<From Calculations Tab
Gross Profit			$ 63,269.96

Operating Expenses
Payment of utilities first year	15,000
Employee salaries first year	135,000
Insurance coverage (General Liability, workers’ compensation, property liability)	10,000
Equipment cost	30,000
Cost of inventory (raw materials and packaging materials)	28,485
Cost of renting facility for tissue production for at least a year	40,000
Cost of tissue distribution truck	50,000
Cost of administrative start-up expenses (computers, printers, stationeries, phones	7,000
All other Start up expenses	11,902
Miscellaneous	10,000
Total Operating Expenses		337,387

Net income		$45,229



b.
Harmon's Rolls
Balance Sheet
As of December 31, 2021

ASSETS				LIABILITIES









				Total Liabilities		-

				STOCKHOLDERS' EQUITY
				Common stock	-
				Owner Investment
				Retained earnings	-
				Total Stockholders' Equity	-

Total Assets		$0		Total Liabilities & Stockholders' Equity	-

Remember Assets = Liabilities + Owners Equity - your balance sheet must be in balance

Make sure raw materials, work in progress, and finished goods inventory show on your balance sheet
These should be the same figures that you use for ending balances on your Calculations tab