Question

Peters Manufacturing Company has the following data at June 30, 2019:

Raw materials inventory, June 1 $13,800
Work in process inventory, June 1 18,100
Finished goods inventory, June 1 43,500
Total manufacturing costs 430,000
Sales 580,000
Work in process inventory, June 30 30,400
Finished goods inventory, June 30 55,200
Raw materials inventory, June 30 18,000

Required:
Prepare an income statement through gross profit for the month of June.

Answer 1

Answer:

Gross Profit                      $ 74,000

Cost of Goods sold                                   $ 506,000

Explanation:

Peters Manufacturing Company

Income Statement

June 30, 2019

Sales                                                 $580,000

Total manufacturing costs 430,000

Add Work in process inventory, June 1 18,100

Cost of Goods Available for Manufacturing  548,100

Less Work in process inventory, June 30 30,400

Cost Of Goods Manufactured  517,700

Add Finished goods inventory, June 1 43,500

Cost Of Goods Available for Sale  561,200

Less Finished goods inventory, June 30 55,200

Cost of Goods sold                                   $ 506,000

Gross Profit                      $ 74,000