Ask Question
2 November, 03:40

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.

+2
Answers (1)
  1. 2 November, 04:46
    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?
Find 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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers