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