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Schedules of Cost of Goods Manufactured and Cost of Goods

Part A: Schedules of Cost of Goods Manufactured and Cost of Goods

Sold; Income Statement

Nish Corporation has provided the following data for the month of April:

Sales ............................................... $220,000

Raw materials purchases ............... $50,000

Direct labor cost ............................ $23,000

Manufacturing overhead cost ........ $59,000

Selling expense .............................. $18,000

Administrative expense ................. $43,000

Inventories: Beginning Ending

Raw materials ........ $26,000 $35,000

Work in process ..... $18,000 $22,000

Finished goods ....... $42,000 $29,000

Required:

  1. Prepare a Schedule of Cost of Goods Manufactured in good form for April.
  2. Prepare an Income Statement in good form for April.

Solutions :

PART A : SCHEDULE OF COST OF GOODS MAUFACTURED ( COST OF PRODUCTION) for the month of APRIL

PARTICULARS

AMOUNT

AMOUNT

RAW MATERIAL CONSUMED

OP STOCK OF RAW MATERIALS

$ 26,000

ADD : RAW MATERIAL PURCHASED

$ 50,000

LESS CL STOCK OF RAW MATERIALS

$ 35,000

RAW MATERIAL CONSUMED

$ 41,000

ADD: DIRECT LABOUR COST

$ 23,000

Prime Cost

$ 64,000

Add : Manufacturing Overhead Cost

$ 59,000

Add: Opening WIP cost

$ 18,000

Less : Closing WIP cost

$ 22,000

Work Cost

$ 119,000

Add : Administrative Expenses

$ 43,000

Cost of Productions

$ 162,000

PART A : SCHEDULE OF COST OF GOODS SOLD for the month of APRIL

PARTICULARS

AMOUNT

AMOUNT

Cost of Productions

$ 162,000

Add: Op. finished stock

$ 42,000

Less : Cl. Finished Stock

$ 29,000

Cost of Goods Sold

$ 175,000

ADD : Selling Expenses

$ 18,000

Cost of Sales

$ 193,000

PART C : INCOME STATEMNTS for the month of APRIL

PARTICULARS

AMOUNT

AMOUNT

SALES

$ 220,000

Cost of Sales

$ 193,000

NET PROFIT

$ 27,000

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