P 2-42 Sentiments Inc

Total Prime costs

Direct Material
Direct Labour
Direct Labour- Fringe benefits

Total Manufacturing Overheads

Depreciation on factory building
Indirect Labor-wages
Production supervisor's salary
Service departments costs
indirect Labour- Fringe benefits
Fringe benefits for production supervisor
Total overtime premium paid
Cost of idle item: Production employees

Total conversion costs

Direct Labour
Total Manufacturing Overheads

Total Product costs

Direct Material
Direct Labour
Total Manufacturing Overheads

Total Period costs

Advertising expense
Administrative cost
Rental of office space for sales personnel
Sales commisions
Product promotion costs
Prob 2-43 San Fernando Fashions Company
Schedule of COGM

Direct Material
Raw material inventory- Jan 1
Add: Purchases

Less: RM inventory - Dec 31

RM consumed
Direct Labor
Manufacturing overhead
Utilities Plant
Depreciation P&M
Indirect Material
Indirect Labor
Other Mftg Overhead
Total manufacturing costs
Add : Work in Progress inventory Jan 1

Less : Work in Progress inventory Dec 31

Cost of Goods Manufactured
Schedule of COGS
COGS
Finished goods inventory Jan 1
Add : Cost of Goods Manufactured
Goods available for sale
Less : Finished goods inventory Dec 31
Cost of goods sold

Income Statement
Sales Revenue
Less : Cost of goods sold
Gross profit
Less : Selling and administration expenses
 Income before taxes
Income tax
Income after taxes

Prob 2-38 Lone Oak Products

Manufacturing Overhead
Indirect Labor
Building Depreciation
Other factory costs

COGM
Direct Material
Raw material inventory- Jan 1
Add: Purchases

Less: RM inventory - Dec 31

RM consumed
Direct Labor
Manufacturing overhead
Total manufacturing costs
Add : Work in Progress inventory Jan 1

Less : Work in Progress inventory Dec 31

Cost of Goods Manufactured
Add:Finished goods inventory Jan 1

Less : Finished goods inventory Dec 31

Cost of goods sold

Net Income
Sales Revenue
Less : Cost of goods sold
Gross profit
Less : Selling and administration expenses
Salaries
Building depreciation
Other selling and admn expenses
Income before taxes
Income tax
Income after taxes

Number of units sold

Add : finished goods inventory Dec 31

Less : finished goods inventory Jan 1

Check sheet 2 for schedule format

2100000
485000
95000
2680000

115000
140000
45000
100000
30000
9000
55000
40000
534000

580000
534000
1114000

2100000
580000
534000
3214000

99000
150000
15000
5000
10000
279000
 40000
200000
240000
25000
215000
200000

40000
80000
10000
15000
80000 225000
640000
40000
680000
20000
660000

20000
660000
680000
50000
630000

980000
630000
350000
150000
 200000
90000
110000

109000
60000
344000
513000

15800
175000
190800
18200
172600
254000
513000
939600
35700
975300
62100
913200
111100
1024300
97900
926400

1495000
926400
568600
133000
20000
195000 348000
220600
66180
154420

11500
1190
12690
1350
11340
Schedule of COGM/COGS
Opening stock of Raw Material XX
Add: Raw material purchased XX
Less: Closing Stock of Raw Material XX

Raw Material Consumed

Direct Labor XX
Direct Expenses. XX
PRIME COST
Add: Factory/Mftg/Prodn Overheads:
Total Manufacturing costs
Add: Opening WIP XX
Less: Closing WIP XX
COST OF GOODS MANUFACTURED
Add: Opening stock of Finished Goods XX
COST OF GOODS AVAILABLE FOR SALE
Less: Closing stock of Finished Goods XX
COST OF GOODS SOLD

FORMAT OF INCOME STATEMENT

Particulars Amount
Sales
Less: Cost of Goods Sold
Gross Margin/ Gross Profit
Less: Selling, General and Administrative
Overheads
Profit Before Tax
Less:Income Tax
Profit after Tax