Kings Inc- Cost Acctg

Ex. 13, King Raw materials used (Note l) Direct labor Total prime costs

Cost of goods manufactured and sold statement 102,000 Note l: Cost of raw materials used 60,000 Raw materials, beg. 162,000 Add: Net cost of purchases Purchase Factory overhead (Note 2) 102,000 s Total manufacturing costs 264,000 Freight in Add: Work in Process, beg. 25,000 Cost of goods Cost of goods placed in process 289,000 Less: Pur. Dis Less: Work in process, end 16,000 Pur. Ret Cost of goods manufactured 273,000 Cost of raw materials avail. F Add: Finished goods, beg. 15,000 Less: Raw mat. End Cost of goods available for sale 288,000 Cost of raw mat. Used Less: Fin. Goods, end 12,000 Cost of goods manufactured and sold 276,000 Note 2: Factory overhead Fac. Supp. Income Statement Rep. And Mai Net sales (Note l) 870,000 Fac. Sal. Less: Cost of goods manuf. And sold (Schedule l) 276,000 Depr.Gross profit 594,000 Total Add: Other income (Note 2) 4,000 Total 598,000 Note 2: Other income Less: Operating exp. Interest incom Selling expenses (Note 3) 202,000 Note 3: Selling Admin. Expn. (Note 4) 42,000 expenses Other expenses (Note 5) 7,000 251,000 Advertising Net operating income 347,000 Sales Sal. Less: Provision for income tax (32%) 111,040 Freight out Net income after tax 235,960 Total Balance Sheet Par Value: Capital Stock, issued, P10 par Subscribed Capital Stock Less: Subscriptions rec. Stock Dividends to be Issued Additional paid-in capital: Donated Capital Premium on Capital Stock Paid-in capital from treasury stocks Total paid-in capital Retained Earnings: Free (140,000 + 235,960) Appropriated for treasury stocks Appraisal Capital Total

Note l: Net sa S L

140,000 100,000 20,000

80,000 40,000

di N 260,000

N ex 10,000 6,000 4,000

375,960 26,000

20,000 280,000

401,960 296,000 977,960

N

Treasury Stocks Stockholders’ Equity Total liabilities and Stockholders’ Eq.

26,000 951,960 1,631,000