Worksheet, Income Statements, and Schedule of Cost of Goods Manufactured and Sold
The following is the trial balance of Hyde Company at December 31, 2016, together with the worksheet adjustments. Hyde Company uses perpetual inventory procedures.
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Trial Balance
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Adjustment
|
| |
Debit
|
Credit
|
Debit
|
Credit
|
|
Cash
|
$28,000
|
|
|
|
|
Materials inventory
|
52,000
|
|
|
|
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Work in process inventory
|
30,000
|
|
|
|
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Finished goods inventory
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42,000
|
|
|
|
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Prepaid insurance
|
2,800
|
|
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(1) $ 1,400
|
|
Factory machinery
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240,000
|
|
|
|
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Accumulated depreciation-Factory machinery
|
|
$50,000
|
|
(2) 17,000
|
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Patents
|
40,800
|
|
|
(3) 3,200
|
|
Accounts payable
|
|
66,200
|
|
|
|
Common stock, $17 par value
|
|
170,000
|
|
|
|
Retained earnings
|
|
25,400
|
|
|
|
Sales
|
|
620,000
|
|
|
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Manufacturing overhead
|
|
17,000
|
(2) $17,000
|
|
|
Cost of goods sold
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414,000
|
|
|
|
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Sales salaries expense
|
52,000
|
|
|
|
|
Advertising expense
|
13,600
|
|
|
|
|
Non-factory administrative expenses
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33,400
|
|
(1) 1,400
|
|
| |
|
|
(3) 3,200
|
|
| |
$948,600
|
$948,600
|
|
|
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Income tax expenses
|
|
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(4) 20,000
|
|
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Income tax payable
|
|
|
|
(4) 20,000
|
| |
|
|
$41,600
|
$41,600
|
Additional information:
1. January 1, 2016, inventories were materials, $36,000; work in process, $27,800; and finished goods, $42,000.
2. Net delivered cost of materials purchased was $142,800.
3. Direct labor was $180,800.
4. Manufacturing overhead included the following:
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Indirect labor
|
$61,000
|
|
Factory utilities
|
8,200
|
|
Repairs and maintenance
|
4,400
|
|
Factory buildings rent
|
18,000
|
|
Indirect material
|
15,000
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Required
a. Complete the worksheet.