Answer:
1. Cost of goods manufactured = $150,500
2. Net income = $36,500
3. Total Inventory = $61,500
Explanation:
Requirement 1
Zoe Corporation
Schedule of cost of goods manufactured
For the month ended March 31
Direct Materials:
Beginning Materials inventory $6,000
Add: Raw materials purchases 92,000
Raw materials available for use $98,000
Less: Ending Raw Materials 8,000
Direct materials used $90,000
Direct Labor 25,000
Prime Cost $115,000
Factory overhead 37,000
Total manufacturing cost $152,000
Add: Work in process, March 1 22,000
Less: Work in process, March 31 (23,500)
Cost of goods manufactured $150,500
Requirement 2
Zoe Corporation
Income Statement for manufacturing company
For the month ended March 31
Sales revenue $257,000
Less: Cost of goods sold
Beginning finished goods inventory $ 21,000
Add: Cost of goods manufactured (Req.1) 150,500
Finished goods available for sale 171,500
Less: Ending finished goods inventory (30,000)
Cost of goods sold 141,500
Gross Profit $115,500
Less: Sales and administrative expenses 79,000
Net operating Income $36,500
Requirement 3
Zoe Corporation
Balance Sheet
As at March 31
Inventory:
Materials $8,000
Work-in-process 23,500
Finished goods 30,000
Total Inventory $61,500
Inventory consists of all the ending materials, ending work-in-process, and ending finished goods. All the ending items need to be shown in the balance sheet because those inventories will remain at hand at the end of the period.
