Prepare a cost of goods manufactured schedule and a partial income statement based off the following information. Cepeda Corporation has the following cost records for June 2017.
Indirect factory labor $4500 Factory utilities $400
Direct materials used $20,000 Depreciation, factory equipment $1,400
Work in process, 6/1/17 3,000 Direct labor $40,000
Work in process, 6/30/17 3,800 Maintenance, factory equipment $1,800
Finished goods, 6/1/17 5, 000 Indirect materials $2,200
Finished goods, 6/30/17 7,500 Factory manager’s salary $3,000
Instructions:
A) Prepare a cost of goods manufactured schedule for June 2017
B) Prepare an income statement through gross profit for June 2017 assuming sales revenue is $92,100.

A. Cost of goods manufactured schedule for June 2017

Indirect factory labor                                     $4,500

Factory utilities                                                 $400

Direct materials used                                 $20,000

Depreciation, factory equipment                  $1,400

Maintenance, factory equipment                 $1,800

Factory manager’s salary                             $3,000

Indirect materials                                          $2,200

Add Opening Work in Process Inventory   $3,000

Less Closing Work in Process Inventory   ($3,800)

Cost of goods manufactured                     $32,500

B. Income statement  for June 2017

Sales Revenue                                                                 $92,100

Less Cost of Sales

Opening Finished Goods Inventory              $5,000

Add Cost of goods manufactured               $32,500

Less Closing Finished Goods Inventory      ($7,500)   ($30,000)

Gross Profit                                                                       $62,100

Explanation:

The cost of goods manufactured schedule include all manufacturing costs for the production period.

Income statement calculates the gross profit as Sales less Cost of Goods Sold.