Question

The following information pertains to Yuji Corporation:

Answer 1

Answer:

a. Cost of raw materials used.$ 112,000

b. Cost of goods manufactured/completed.$ 188,000

c. Cost of goods sold. $ 196,000

d. Gross margin.  $ 104,000

e. Net income. $ 35155

Explanation:

Yuji Corporation

Cost Of Goods Sold Statement.

Beginning Raw materials inventory $34,000

Add Raw material purchased $116,000

Less Ending Raw materials inventory  $38,000

Direct Materials Used $ 112,000

Add

Direct Labor Wages to factory workers 55,000

FOH $ 40,000

Utilities for factory building 5,000

Salary to factory supervisors 25,000

Depreciation on factory building and equipment 10,00

Total Manufacturing Costs  $ 207,000

Add Beginning Work-in-process inventory 126,000  

Cost of goods  available for manufacture $ 333,000

Less Ending Work-in-process inventory  145,000

Cost of goods manufactured/completed $ 188,000

Add Beginning Finished goods inventory 76,000

Cost of goods available for sale $ 264,000

Less Ending Finished goods inventory  68,000

Cost of goods sold $ 196,000

We add and subtract as per format to get the required amounts.

Yuji Corporation

Income Statement

Sales revenue       $300,000

Less Cost of goods sold $ 196,000

Gross margin     $ 104,000

Less Selling and Administrative Expenses

Salary to selling and administrative staff 40,000

Depreciation on office building 12,000

Utilities for office building 7,500

Profit Before Income Tax    44,500

Income Tax  ( 21% of 44,500)  $ 9345

Net Income  $ 35155