Asked on 15 Apr 2020

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May: 

1

 

Rainier Company ($)

Yakima Company ($)

2

Materials inventory, May 1

100,000.00

48,200.00

3

Materials inventory, May 31

(a)

50,000.00

4

Materials purchased

950,000.00

710,000.00

5

Cost of direct materials used in production

938,500.00

(a)

6

Direct labor

2,860,000.00

(b)

7

Factory overhead

1,800,000.00

446,000.00

8

Total manufacturing costs incurred May

(b)

$2,484,200.00

9

Total manufacturing costs

5,998,500.00

2,660,600.00

10

Work in process inventory, May 1

400,000.00

176,400.00

11

Work in process inventory, May 31

382,000.00

(c)

12

Cost of goods manufactured

(c)

2,491,500.00

13

Finished goods inventory, May 1

615,000.00

190,000.00

14

Finished goods inventory, May 31

596,500.00

(d)

15

Sales

9,220,000.00

4,550,000.00

16

Cost of goods sold

(d)

2,470,000.00

17

Gross profit

(e)

(e)

18

Operating expenses

1,000,000.00

(f)

19

Net income

(f)

1,500,000.00

 

Required:

For both companies, determine the amounts of the missing items (A) through (F), identifying them by letter.

Prepare Yakima Company's statement of cost of goods manufactured for May.

Prepare Yakima Company's income statement for May.

 

$

Answered on 15 Apr 2020

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