Ask Question
27 May, 05:49

Information from the records of the Bridgeview Manufacturing Company for August 2017 follows:Sales $315,000 Selling and administrative expenses 127,500 Purchases of raw materials 45,000 Direct labor 30,000 Manufacturing overhead 55,500 Inventories August 1 August 31 Raw materials $ 8,000 $ 5,000 Work-in-process 14,000 11,000 Finished goods 15,000 19,000 Prepare a statement of cost of goods manufactured and an income statement for August 2017. Do not use negative signs with any of your answers below.

+1
Answers (1)
  1. 27 May, 07:51
    0
    Instructions are listed below.

    Explanation:

    Giving the following information:

    Sales $315,000

    Selling and administrative expenses 127,500

    Purchases of raw materials 45,000

    Direct labor 30,000

    Manufacturing overhead 55,500

    Inventories:

    August 1:

    Raw materials = $8,000

    Work-in-process = $14,000

    Finished goods = $15,000

    August 31

    Raw materials $ 5,000

    Work-in-process $11,000

    Finished goods $19,000

    cost of goods manufactured = beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

    cost of goods manufactured = 14,000 + (8,000 + 45,000 - 5,000) + 30,000 + 55,500 - 11,000 = $136,500

    COGS = beginning finished inventory + cost of goods manufactured - ending finished inventory

    COGS = 15,000 + 136,500 - 19,000 = $132,500

    Income statement:

    Sales = 315,000

    COGS = 132,500

    Gross profit = 182,500

    Selling and administrative expenses = 127,500

    Net operating profit = $55,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Information from the records of the Bridgeview Manufacturing Company for August 2017 follows:Sales $315,000 Selling and administrative ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers