Prepare an income statement for jerry company

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Reference no: EM132684435

Problem - Manufacturing income statement, statement of cost of goods manufactured

Several items are omitted from each of the following income statement and cost of goods manufactured statement data for the month of December 2012:

 

Tom Company

Jerry Company

Materials inventory, December 1

$ 187,200

$ 118,000

Materials inventory, December 31

(a)

120,000

Materials purchased

475,200

228,000

Cost of direct materials used in production

501,600

(a)

Direct labor

705,600

(b)

Factory overhead

218,400

120,000

Total manufacturing costs incurred during December

(b)

(b) 690,000

Total manufacturing costs

1,785,600

985,000

Work in process inventory, December 1

360,000

295,000

Work in process inventory, December 31

302,400

(c)

Cost of goods manufactured

(c)

683,000

Finished goods inventory, December 1

316,800

136,000

Finished goods inventory, December 31

331,200

(d)

Sales

2,760,000

1,117,000

Cost of goods sold

(d)

701,000

Gross profit 

(e)

(e)

Operating expenses

360,000

(f)

Net income

(f)

256,000

Instructions -

1. Determine the amounts of the missing items, identifying them by letter.

2. Prepare a statement of cost of goods manufactured for Jerry Company.

3. Prepare an income statement for Jerry Company.

Reference no: EM132684435

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