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 <<

Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 5M
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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  
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