Part A: Schedules Of Cost Of Goods Manufactured And Cost

Question

Part A Schedules Of Cost Of Goods Manufactured And Cost Of Goods Sold Part A: Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement Nish Corporation has provided the following data for the month of April: Sales ............................................... $220,000 Raw materials purchases ............... $50,000 Direct labor cost ............................ $23,000 Manufacturing overhead cost ........ $59,000 Selling expense .............................. $18,000 Administrative expense ................. $43,000 Inventories: Beginning Ending Raw materials ........ $26,000 $35,000 Work in process ..... $18,000 $22,000 Finished goods ....... $42,000 $29,000 Required: a. Prepare a Schedule of Cost of Goods Manufactured in good form for April. b. Prepare an Income Statement in good form for April.

Dr. Jack HW Helper · Accepted Answer

Introduction The accounting task involves preparing a Schedule of Cost of Goods Manufactured (COGM) and a corresponding Income Statement based on the financial data provided by Nish Corporation for April. These schedules are essential for understanding the company's production costs and profitability during the period, offering valuable insights into operational efficiency and financial performance. Part A: Schedule of Cost of Goods Manufactured for April The Schedule of Cost of Goods Manufactured computes the total production costs incurred during April. It begins with raw materials inventory, considers purchases, and subtracts ending raw materials inventory to determine raw materials used. Then, adding direct labor and manufacturing overhead, it calculates total manufacturing costs. After accounting for beginning and ending work-in-process inventories, the total cost of goods manufactured is determined. Step 1: Raw Materials Used Raw Materials Inventory, Beginning: $26,000 + Purchases: $50,000 = Raw Materials Available: $76,000 - Ending Raw Materials Inventory: $35,000 = Raw Materials Used: $41,000 Step 2: Total Manufacturing Costs - Raw Materials Used: $41,000 - Direct Labor: $23,000 - Manufacturing Overhead: $59,000 = Total Manufacturing Costs: $123,000 Step 3: Add Beginning Work in Process Inventory Beginning Work in Process Inventory: $18,000 Step 4: Deduct Ending Work in Process Inventory Ending Work in Process Inventory: $22,000 Step 5: Calculate Cost of Goods Manufactured Cost of Goods Manufactured = Beginning WIP + Total Manufacturing Costs - Ending WIP = $18,000 + $123,000 - $22,000 = $119,000 Part B: Income Statement for April The Income Statement showcases sales revenue, cost of goods sold, gross profit, and expenses, culminating in net income. Step 1: Calculate Cost of Goods Sold (COGS) Begin with Opening Finished Goods Inventory: $42,000 Add: Cost of Goods Manufactured: $119,000 Less: Ending Finished Goods Inventory: $29,000 COGS = $42,000 + $119,000

Part A: Schedules Of Cost Of Goods Manufactured And Cost

Part A Schedules Of Cost Of Goods Manufactured And Cost Of Goods Sold

Paper For Above instruction

Introduction

Part A: Schedule of Cost of Goods Manufactured for April

Step 1: Raw Materials Used

Step 2: Total Manufacturing Costs

Step 3: Add Beginning Work in Process Inventory

Step 4: Deduct Ending Work in Process Inventory

Step 5: Calculate Cost of Goods Manufactured

Part B: Income Statement for April

Step 1: Calculate Cost of Goods Sold (COGS)

Step 2: Compute Gross Profit

Step 3: Deduct Operating Expenses

Step 4: Calculate Net Income

Conclusion

References