Question Manufacturing Cost Schedule and Income Statement
Neptune Manufacturing Co is a wholly owned subsidiary of Jupiter Australia and utilises a traditional manufacturing cost flow inventory and accounting system. Neptune Manufacturing Co is incorporated and operates in Australia and pays tax at the Australian corporate rate of 30%. There are no adjustments for accruals or prepayments.
Trading data for Neptune Manufacturing Co for the 2013 calendar year was as follows:
|
Account:
|
$
|
|
Raw Materials & Ingredients (Purchases)
|
12,582,000
|
|
Freight Inwards
|
370,000
|
|
Plant Utility Costs
|
2,486,500
|
|
Depreciation of Factory Plant, Equipment & Machinery
|
1,250,000
|
|
Depreciation of Office Equipment & Furniture
|
156,000
|
|
Office Salaries and Costs
|
1,256,000
|
|
Factory Direct Labour Cost
|
3,658,000
|
|
Factory Indirect Labour Cost
|
1,123,000
|
|
Manufacturing Overhead
|
482,000
|
|
Interest & other charges
|
1,901,000
|
|
Sales Revenue
|
32,101,000
|
|
Freight Outwards
|
672,000
|
|
Sales & Marketing Expenses
|
1,985,000
|
|
Accounting & Audit costs
|
875,000
|
On December 31st 2013 selected account balances of Neptune Manufacturing Co were as follows (with comparative 31/12/2012 Opening Balance figures):
|
Account:
|
Dec 31, 2013
|
Dec 31, 2012
|
|
Cash & Cash Equivalents
|
327,000
|
1,243,000
|
|
Accounts Receivable
|
2,459,000
|
1,926,000
|
|
Factory Plant, Equipment & Machinery (at cost)
|
8,500,000
|
7,125,000
|
|
Office Equipment & Furniture (at cost)
|
1,500,000
|
1,450,000
|
|
Land & Buildings (at cost)
|
13,500,000
|
13,500,000
|
|
Raw Material Inventory
|
386,500
|
426,000
|
|
Work in Process (WIP) Inventory:
|
|
|
|
Raw Materials
|
1,178,000
|
902,000
|
|
Direct Labour
|
647,000
|
561,000
|
|
Manufacturing Overhead
|
296,000
|
205,000
|
|
Total WIP
|
2,121,000
|
1,668,000
|
|
Finished Goods Inventory
|
1,254,000
|
1,002,000
|
|
Accounts Payable
|
621,000
|
987,000
|
|
Long Term Debt
|
15,000,000
|
15,000,000
|
Using Excel prepare a Schedule of Cost of Goods Manufactured, Schedule of Cost of Goods Sold, and an income statement for the Jupiter Manufacturing Co from the information provided.