Answer :
Answer and Explanation:
The computation of cost of goods manufactured is shown below:-
Particulars Amount
Work in process, Jan 1 $16,990
Direct Materials
Materials inventory $21,240
Materials purchased $154,190
Materials available for use $175,430
Less Materials Inventory,
Dec 31 $32,930
Direct Materials used $142,500
Direct Labor $224,280
Manufacturing overhead $184,560
Total Manufacturing costs $551,340
Total cost of Work in process $568,330
Less Work in process, Dec 31 $18,070
Cost of Goods Manufactured $550,260
The preparation of income statement through gross profit is shown below:-
AIKMAN COMPANY
Income Statement (Partial)
Particulars Amount
Sales $903,230
Cost of Goods Sold
Finished Goods, Jan 1 $30,180
Cost of Goods Manufactured $550,260
Cost of Goods Available
for Sale $580,440
Less Finished Goods, Dec 31 $24,300
Total cost of goods sold $556,140
Gross Profit $347,090
3. The presentation of the ending inventories on the December 31, 2017, balance sheet is shown below:-
AIKMAN COMPANY
(Partial) Balance Sheet
For the year ended Dec. 31, 2017
Current Assets
Inventories
Finished Goods $24,300
Work in Process $18,070
Raw Materials $32,930 $75,300