The total manufacturing costs for the year were 675000 the

Assignment Help Accounting Basics

Reference no: EM13577658

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	$	216,000
Purchases of raw materials	$	268,000
Direct labor		?
Administrative expenses	$	152,000
Manufacturing overhead applied to work in process	$	337,000
Total actual manufacturing overhead costs	$	357,000

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

	Beginning of Year		End of Year
Raw materials	$	58,000	$	39,000
Work in process		?	$	31,000
Finished goods	$	36,000		?

The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $39,000. The company's overapplied or underapplied overhead is closed entirely to cost of goods sold.

Required:

a.	Prepare a schedule of cost of goods manufactured. (Input all amounts as positive values. Omit the "$" sign in your response.)

Valenko Company Schedule of Cost of Goods Manufactured
Debit Credit Direct materials -
Raw materials inventory
Add : Purchases of raw materials

Total raw materials available -
Deduct : Raw materials inventory, ending

Raw materials used in production -
Direct labor
Manufacturing overhead applied to work in process inventory

Total manufacturing cost -
Add : Beginning work in process inventory


Deduct: Ending work in process inventory

Cost of goods manufactured

b.	Prepare a schedule of cost of goods sold. (Input all amounts as positive values. Omit the "$" sign in your response.)

Valenko Company Schedule of Cost of Goods Sold Credit
Finished goods inventory, beginning
Add : Cost of goods manufactured

Cost of goods available for sale
Deduct : Finished goods inventory, ending

Unadjusted cost of goods sold
Add : Underapplied overhead

Adjusted cost of goods sold

c.	Prepare an income statement for the year. (Input all amounts as positive values. Omit the "$" sign in your response.)

Valenko Company Income Statement
Debit Credit Sales
Cost of goods sold

Gross margin
Selling and administrative expenses -
Selling expenses
Administrative expense

Net operating income

Reference no: EM13577658

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