Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December.

On Company Off Company
Materials inventory, December 1 $74,060 $96,280
Materials inventory, December 31 (a) 108,800
Materials purchased 188,110 (a)
Cost of direct materials used in production 198,480 (b)
Direct labor 279,210 216,630
Factory overhead 86,650 107,830
Total manufacturing costs incurred in December (b) 622,930
Total manufacturing costs 706,540 854,960
Work in process inventory, December 1 142,200 232,030
Work in process inventory, December 31 119,980 (c)
Cost of goods manufactured (c) 617,150
Finished goods inventory, December 1 125,160 107,830
Finished goods inventory, December 31 131,090 (d)
Sales 1,091,640 962,800
Cost of goods sold (d) 622,930
Gross profit (e) (e)
Operating expenses 142,200 (f)
Net income (f) 213,740

Required:
a. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
b. Prepare On Company's statement of cost of goods manufactured for December.
c. Prepare On Company's income statement for December.

On company

a. $63,690

b. $564,340

c. 587,360

d. $622,930

e. $510,210

f. $368,010

Off company

Explanation:

On company

Statement of cost of goods manufactured for the month ended.

Raw materials at the beginning

$74,060

Add purchases

$188,110

Raw materials available

$262,170

Less Raw materials at close

($63,690)

Cost of raw materials used

$198,480

Add direct labor

$279,210

Prime cost

$477,690

Add factory overhead

$86,650

Manufacturing cost

$564,340

Add beginning work in process

$142,200

Less ending work in process

($119,180)

Cost of goods manufactured

$587,360

•Statement of cost of goods sold

Finished goods at the beginning

$125,160

Add cost of goods manufactured

$587,360

Cost of goods available for sale

$712,520

Less finished goods at end

($131,090)

Cost of goods sold

$581,430.

Off company

Statement of cost of goods manufactured for the month ended

Raw materials at the beginning

$96,280

Add purchases

$93,390

Raw materials available

$189,670

Less Raw materials at close

($108,800)

Cost of raw materials used

$298,470

Add direct labor

$216,630

Prime cost

$515,100

Add factory overhead

$107,830

Manufacturing cost

$622,930

Add beginning work in process

$232,030

Less ending work in process

($237,810)

Cost of goods manufactured

$617,150

•Statement of cost of goods sold

Finished goods at the beginning

$107,830

Add cost of goods manufactured

$617,150

Cost of goods available for sale

$724,980

Less finished goods at end

($102,050)

Cost of goods sold

$622,930

• On company

Income statement for the month ended

Sales

$1,091,640

Less cost of goods sold

($581,430)

Gross profit

$510,210

Less operating expenses

($142,200)

Net income

$368,010

Off company

Income statement for the month ended

Sales

Less cost of goods sold

Gross profit

Less operating expenses

Net income

answer; ///liability;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.