Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May:
Rainier Company Yakima Company
Materials inventory, May 1 $ 100,000 $ 48,200
Materials inventory, May 31 (a) 50,000
Materials purchased 950,000 710,000
Cost of direct materials used in production 938,500 (a)
Direct labor 2,860,000 (b)
Factory
Total
Total manufacturing costs 5,998,500 2,660,600
Work in process inventory, May 1 400,000 176,400
Work in process inventory, May 31 382,000 (c)
Cost of goods manufactured (c) 2,491,500
Finished goods inventory, May 1 615,000 190,000
Finished goods inventory, May 31 596,500 (d)
Sales 9,220,000 4,550,000
Cost of goods sold (d) 2,470,000
Gross profit (e) (e)
Operating expenses 1,000,000 (f)
Net income (f) 1,500,000
Instructions
For both companies, determine the amounts of the missing items (a) through (f), identifying them by letter.
HIDE ANSWER
Check Figure: b. Yakima Company, $1,330,000
Prepare Yakima Company’s statement of cost of goods manufactured for May.
Prepare Yakima Company’s income statement for May.
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