The following information is available for Robstown Corporation for 20Y8:

Inventories January 1 December 31
Materials $77,600 $93,600
Work in process 109,000 96,700
Finished goods 112,000 109,900

December 31
Advertising expense $ 69,000
Depreciation expense-office equipment 23,000
Depreciation expense-factory equipment 14,000
Direct labor 186,700
Heat, light, and power-factory 5,900
Indirect labor 24,860
Materials purchased 123,200
Office salaries expense 75,800
Property taxes-factory 4,005
Property taxes-office building 12,600
Rent expense-factory 6,375
Sales 862,000
Sales salaries expense 135,000
Supplies-factory 3,500
Miscellaneous costs-factory 4,620

Prepare the 20Y8 statement of cost of goods manufactured.

Cost Of Goods Manufactured 363560

Explanation:

Robstown Corporation

Statement of Cost of Goods Manufactured.

For the year 20Y8:

Inventories January 1 Materials $77,600

Add Materials purchased 123,200

Less December 31  Materials  $93,600

Materials Used  $ 107,200

Direct labor 186,700

Factory Overhead 57360

Indirect labor 24,860

Heat, light, and power-factory 5,900

Depreciation expense-factory equipment 14,000

Rent expense-factory 6,375

Property taxes-factory 4,005

Supplies-factory 3,500

Miscellaneous costs-factory 4,620

Total Manufacturing Costs $ 351260

Add Work in process Beginning 109,000

Cost Of Goods Available for Manufacture 460260

Less Work in process Ending  96,700

Cost Of Goods Manufactured 363560

We add the Direct Material used Direct Labor And FOH to get the total manufacturing costs.

When we add the given figures according to the format of the Cost of Goods manufactured Statement we get the cost of goods manufactured.

The cost of goods sold statement is shown to show the difference between the cost of goods manufactured and cost of goods sold statement.

Robstown Corporation

Statement of Cost of Goods Sold.

For the year 20Y8:

Cost Of Goods Manufactured 363560

Finished goods Beginning 112,000

Cost Of Goods Available for Sale  475560

Finished goods Ending 109,900

Cost Of Goods Sold   365, 660

The income statement is given to show the difference between FOH items and Selling expenses.

Robstown Corporation

Income Statement .

For the year 20Y8:

Sales 862,000

Cost Of Goods Sold   365, 660

Gross Profit  496,340

Advertising expense $ 69,000

Depreciation expense-office equipment 23,000

Office salaries expense 75,800

Property taxes-office building 12,600

Sales salaries expense 135,000

Net Income $ 180940