Question

Zoe Corporation has the following information for the month of March:

Purchases $ 92,000
Materials inventory, March 1 6,000
Materials inventory, March 31 8,000
Direct labor 25,000
Factory overhead 37,000
Work in process, March 1 22,000
Work in process, March 31 23,500
Finished goods inventory, March 1 21,000
Finished goods inventory, March 31 30,000
Sales 257,000
Sales and administrative expenses 79,000

Prepare (a) a schedule of cost of goods manufactured and (b) an income statement for the month.

Answer 1

Answer:

(a) a schedule of cost of goods manufactured

Purchases                                    $ 92,000

Materials inventory, March 1       $ 6,000

Materials inventory, March 31     ($ 8,000)

Material Consumed                     $ 90,000

Direct labor                                  $ 25,000

Factory overhead                        $ 37,000

Work in process, March 1            $ 22,000

Work in process, March 31          ($ 23,500)

COGM                                           $ 150,500

(b) an income statement for the month

Sales                                                      $ 257,000

COGS

COGM               $ 150,500

FG opening       $  21,000

FG closing         ($  30,000)

Total                                                       ($ 141,500)

Gross profit                                            $ 115,500

Sales and administrative expenses     ($ 79,000)

Net profit                                                $ 36,500